t i m b e r p r i c i n g b r a n c h - british columbiajuly 1, 2012 i new interior appraisal manual...

This manual is intended for the use of individuals or companies when conducting business with the British Columbia Government.

Permission is granted to reproduce it for such purposes. This manual and related documentation and publications, are protected under the They may not be reproduced for sale or for other purposes without the express

written permission of the Province of British Columbia.

Federal Copyright Act.

T I M B E R P R I C I N G B R A N C H

Interior Appraisal Manual

Effective July 1, 2012

July 1, 2012 i

New Interior Appraisal Manual Highlights

The July 1, 2012 Interior Appraisal Manual has been updated to a cost base of 2009/10, with revisions to the format. Changes by section in this year’s manual are highlighted below:

Section 1.1 Definition of District Manager updated. Definition of skyline system added, section reference corrected, and housekeeping.

Section 1.2 Housekeeping changes.

Section 1.5 Updated requirements for cruise data submission.

Section 1.5, Table 1-1 Updated table name.

Section 2.1 Updated text for notification of stumpage determinations.

Section 2.2.1 Revised text for cruise based cutting authorities’ changed circumstances. New changed circumstance for specific specified operations and TOA.

Section 2.2.1.1 New text indicating the person who determines the stumpage rate may use the best information available if cruise data for the reappraisal is not available.

Section 2.2.1.2 Clarification added for the effective date of changed circumstance reappraisal.

Section 2.3 Option for woodlots to fix an adjusting stumpage rate has been removed.

Section 2.4 Revised text for correctable errors to include calculation of published appraisal parameters.

Section 3.2.2, Table 3-1 Updated LRF update add-ons.

Section 3.3 Updated market pricing variable definitions

Interior Appraisal Manual Ministry of Forests, Lands and NRO

ii July 1, 2012

Section 3.3, Table 3-2 Updated District Average Number of Bidders.

Section 3.3, Table 3-3 New table with zonal average cutting permit volumes.

Section 3.4 Updated Estimated Winning Bid equation.

Section 3.5.1 Revised text for common junction.

Section 3.6.1 Updated water transportation cost estimates and tow equation.

Section 3.6.2 Updated special transportation cost estimates.

Section 3.6.3 Updated camp cost estimates. Revised text for two licensees sharing costs for one camp.

Section 3.6.4 Updated skyline cost estimate. New text for skyline yarding over 600 meters horizontal distance.

Section 3.6.6 Updated high development cost estimate.

Section 3.7 Updated CPI cost base (2009/10).

Section 4.1 Removed text for low volume cost estimate

Section 4.2.1 Updated Forest Management Administration (FMA) cost estimate.

Section 4.2.2 Removed section on low volume cost estimate. New text describing how FMA is treated for deciduous volume.

Section 4.2.3 Removed section on total administration costs.

Section 4.3.1.1 Revised text for development cost estimates on crown land.

Section 4.3.1.4 Revised section on amortisation agreements.

Section 4.3.2.2 (6) List of Biogeoclimatic zones updated.

Section 4.3.2.3 Updated road group equations for tabular road subgrade cost estimates. Updated subgrade cost estimate for snow and ice roads.

Section 4.3.2.3, Table 4-1 Cascadia and Pacific TSAs added.

Section 4.3.2.4, Table 4-2 Updated culvert cost estimates.

Section 4.3.2.5 Updated road group stabilizing material equations and variable definitions.

Timber Pricing Branch Highlights

July 1, 2012 H-iii

Section 4.3.2.6 Cost estimates updated for cattle guards, fencing, and pipeline crossings.

Section 4.3.3 Additional text for clarification on applicable rates for engineered cost estimates.

Section 4.3.3.1 Updated text for ECE cost year.

Section 4.3.3.1,Table 4-3 New trend factor for 2012 ECE costs.

Section 4.4, Table 4-4 Updated road management cost estimates.

Section 4.4.2 New section describing how road management TOA is treated for deciduous volume.

Section 4.5, Table 4-5 Updated basic silviculture cost estimates. New BEC zone/subzone/variant added.

Section 4.6, Table 4-6 Updated tables for Point of Appraisal Low Grade Percent Adjustment by Timber Species.

Section 4.7 Updated equation for Market Logger Cost and CPI cost base.

Section 4.8 Updated Return to Forest Management factor.

Section 4.9 Updated Tenure Obligation Adjustment equation.

Section 5.1 Revised text for BCTS upsets

Section 6.2 New subsection for competitively awarded licence to cut.

Section 5.1.2 Housekeeping changes

Section 5.2.2 Revised text for determining the reserve rate

Section 6.3, Table 6-3 Added rates for Cascadia and Pacific TSA Blocks to smallest unit table.

Section 6.3(5) Revised text for BCTS road permits.

Section 6.6, Table 6-6 Shuswap Lake added for underwater salvage. Updated per hectare reserve stumpage rates. Mine sites added for Cassiar TSA.

Section 6.7 Revised text to clarify activities included for linear tenures.

Section 6.9 New subsection for agriculture purposes.


iv July 1, 2012

Appendix I Equipment and labour rates updated to the cost base of the manual.

Appendix III New moist classification added. Updated BWBS classifications.

Appendix IV Revised text for reserved areas.

Appendix VI Section removed.

July 1, 2012 i

Table of Contents

1 Introduction

1.1 Definitions........................................................................................................... 1-2 1.2 Terms of Reference ............................................................................................. 1-7

1.2.1 Responsibility for Stumpage Determination .............................................. 1-7 1.2.2 Stumpage Appraisal Parameters ................................................................ 1-7 1.2.3 Minimum Stumpage Rate .......................................................................... 1-7

1.3 Numbering and Calculation Conventions ........................................................... 1-8 1.4 Cutblocks within a Cutting Authority Area ........................................................ 1-9 1.5 Appraisal Data Submission Requirements ........................................................ 1-10

1.5.1 Cruise Information ................................................................................... 1-10 1.5.1.1 Comparative Cruise Data ................................................................ 1-11

1.5.2 Appraisal Data Forms .............................................................................. 1-12 1.5.3 Appraisal Map .......................................................................................... 1-12

2 Appraisals, Reappraisals and Stumpage Adjustments

2.1 Appraisal Process ................................................................................................ 2-2 2.2 Reappraisals ........................................................................................................ 2-4

2.2.1 Changed Circumstances ............................................................................. 2-4 2.2.1.1 Changed Circumstance Reappraisal Procedure ................................ 2-7 2.2.1.2 Effective Date of a Changed Circumstance Reappraisal .................. 2-7

2.2.2 Minister’s Direction ................................................................................... 2-8 2.2.2.1 Minister’s Direction Procedure ......................................................... 2-8

2.2.3 Reappraisals Due to Insect Damage .......................................................... 2-9 2.2.3.1 Insect Damage Reappraisal Procedure .............................................. 2-9 2.2.3.2 Effective Date of an Insect Damage Reappraisal ........................... 2-10

2.3 Stumpage Adjustments ..................................................................................... 2-11 2.4 Correctable Errors ............................................................................................. 2-12 2.5 Redetermination of Stumpage Rate by Agreement .......................................... 2-14

3 Final Estimated Winning Bid

3.1 Appraisal Methodology ...................................................................................... 3-2 3.2 MPS Lumber Selling Prices ................................................................................ 3-3

3.2.1 Lumber AMVs ........................................................................................... 3-3 3.2.2 Calculation of the Real Stand Selling Price (RSP) .................................... 3-3

3.3 Estimated Winning Bid Variables ...................................................................... 3-5 3.4 Estimated Winning Bid Equation ....................................................................... 3-9 3.5 Log Transportation............................................................................................ 3-10


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3.5.1 Cycle Time Variables .............................................................................. 3-10 3.5.1.1 Primary Cycle Time (CT): .............................................................. 3-10 3.5.1.2 Haul Method ................................................................................... 3-11 3.5.1.3 Secondary Haul ............................................................................... 3-12

3.5.2 Point of Appraisal .................................................................................... 3-12 3.6 Specified Operations ......................................................................................... 3-14

3.6.1 Water Transportation ............................................................................... 3-14 3.6.2 Special Transportation Systems ............................................................... 3-14 3.6.3 Camp Costs .............................................................................................. 3-16 3.6.4 Skyline and Intermediate Support Skyline .............................................. 3-17 3.6.5 Horse Logging ......................................................................................... 3-18 3.6.6 High Development Cost ........................................................................... 3-18

3.7 Final Estimated Winning Bid............................................................................ 3-19

4 Tenure Obligation Adjustments

4.1 Tenure Obligation Adjustment (TOA) ................................................................ 4-2 4.2 Administration Costs .......................................................................................... 4-3

4.2.1 Forest Management Administration (FMA) .............................................. 4-3 4.2.2 Final Forest Management (FFMA) ............................................................ 4-3

4.3 Development ....................................................................................................... 4-4 4.3.1 Development Cost Allocation .................................................................... 4-6

4.3.1.1 Development Cost Estimates on Crown Lands ................................ 4-6 4.3.1.2 Development Cost Estimates on Private Land .................................. 4-7 4.3.1.3 Existing Roads and Structures .......................................................... 4-7 4.3.1.4 Amortization Agreements ................................................................. 4-8

4.3.2 Tabular Cost Estimates .............................................................................. 4-9 4.3.2.1 Subgrade Construction ...................................................................... 4-9 4.3.2.2 Subgrade Construction Variables ..................................................... 4-9 4.3.2.3 Subgrade Cost Estimate .................................................................. 4-12 4.3.2.4 Drainage Structures ......................................................................... 4-14 4.3.2.5 Additional Stabilizing Material ....................................................... 4-16 4.3.2.6 Cattle Guards, Fencing and Pipeline Crossings ............................. 4-17

4.3.3 Detailed Engineering Cost Estimates (ECE) ........................................... 4-18 4.3.3.1 Trending of Detailed Engineering Costs......................................... 4-22

4.4 Road Management ............................................................................................ 4-24 4.4.1 Road and Land Use Charges .................................................................... 4-27 4.4.2 Final Road Management (FRM) .............................................................. 4-28

4.5 Basic Silviculture Cost Estimate ....................................................................... 4-29 4.5.1 Root Disease Control ............................................................................... 4-31 4.5.2 Total Silviculture Cost Estimate .............................................................. 4-31

4.6 Low Grade Percent Adjustment ........................................................................ 4-35 4.7 Market Logger Cost .......................................................................................... 4-40 4.8 Return to Forest Management (RFM)............................................................... 4-41 4.9 Final Tenure Obligation Adjustment ................................................................ 4-42

Timber Pricing Branch Table of Contents

July 1, 2012 iii

5 Stumpage Rate Determination

5.1 Stumpage Rate Determination for a Cutting Authority Entered into Under a BCTS Licence .................................................................................................. 5-2

5.1.1 Upset Stumpage Rates (Upset) .................................................................. 5-2 5.1.2 IU Calculation ............................................................................................ 5-4 5.1.3 Total Stumpage .......................................................................................... 5-4

5.2 Stumpage Rate Determination for a Cutting Authority Other than a Cutting Authority Entered into Under a BCTS Licence, or a Cutting Authority for Which a Stumpage Rate is Determined Under Chapter 6 ............ 5-5

5.2.1 Indicated Rate (IR) ..................................................................................... 5-5 5.2.2 Reserve Stumpage ...................................................................................... 5-5 5.2.3 Stumpage Rate ........................................................................................... 5-5 5.2.4 Levies ......................................................................................................... 5-6

6 Miscellaneous Policies

6.1 Coniferous Average Sawlog Stumpage Rates by Forest Zone and Species ....... 6-2 6.1.1 Community Forest Agreements ................................................................. 6-3 6.1.2 Woodlot Licences ...................................................................................... 6-3 6.1.3 Incidental Conifer in Deciduous Leading Stands ...................................... 6-4

6.2 Cutting Authorities With 5 000 m3 or Less Volume ........................................... 6-5 6.2.1 Forestry Licences to Cut for Specific Purposes (No Volume Limit) ......... 6-6

6.3 Road and Blanket Salvage Permits ..................................................................... 6-9 6.4 Salvage Timber Stumpage Rates ...................................................................... 6-12 6.5 Decked and Partially Harvested Timber ........................................................... 6-14 6.6 Miscellaneous Stumpage Rates......................................................................... 6-16 6.7 Linear Tenures .................................................................................................. 6-18 6.8 Controlled Recreation Areas (CRAs) ............................................................... 6-19 6.9 Cruise Based Stumpage Calculations ............................................................... 6-20

Appendices

Index


iv July 1, 2012

Tables Table 3-1 LRF Update Add-ons for MPS ....................................................................... 3-4 Table 3-2 District Average Number of Bidders (DANB) ............................................... 3-7 Table 3-3 Zonal Volume ................................................................................................. 3-7 Table 3-4 Points of Appraisal ....................................................................................... 3-12 Table 3-5 Rail Log Transportation ............................................................................... 3-14 Table 3-6 Support Centres ............................................................................................ 3-16 Table 4-1 Road Groups ................................................................................................. 4-13 Table 4-2 Culvert Appraisal Cost Estimates ................................................................. 4-15 Table 4-3 Trend Factors for ECE Costs ........................................................................ 4-23 Table 4-4 Road Management Cost Estimates ............................................................... 4-25 Table 4-5 BEC Silviculture Cost Estimates .................................................................. 4-32 Table 4-6 Point of Appraisal (POA) Low Grade Percent Adjustment by Timber

Species ......................................................................................................... 4-36 Table 4-7 Point of Appraisal (POA) Low Grade Percent Adjustment by Timber

Species ......................................................................................................... 4-38 Table 6-1 Coniferous Average Sawlog Stumpage Rates in $/m3 by Forest Zone

and Species..................................................................................................... 6-2 Table 6-2 Community Forest Agreements and Woodlot Licences: Coniferous

Average Sawlog Stumpage Rates in $/m3 ..................................................... 6-4 Table 6-3 Coniferous Average Sawlog Stumpage Rates by Smallest Geographic

Unit ................................................................................................................ 6-8 Table 6-4 Coniferous Average Sawlog Stumpage Rates for Salvage of Damaged

Timber by Forest Zone and Species in $/m3 ................................................ 6-12 Table 6-5 Coniferous Average Sawlog Stumpage Rates for Salvage of Post

Harvest Material by Forest Zone and Species in $/m3 ................................. 6-12 Table 6-6 Miscellaneous Stumpage Rates .................................................................... 6-15

July 1, 2012 1-1

Introduction 1


1-2 July 1, 2012

1.1 Definitions

In this manual:

“Act” means Forest Act;

“Agreement” means a form of agreement granting rights to harvest Crown timber referred to in section 12 of the Act, or a pulpwood agreement;

“Anniversary date” means the annual recurrence of the month and day when the term of the cutting authority began;

“Applicable Volume” means:

a. Except as provided in sections 2.2.1(e) and 4.3(12), and subject to paragraph (b) of this definition, where the harvesting is authorized on a cutting authority area under an agreement other than a BCTS licence, applicable volume means the total net coniferous volume,

b. Where the cutting authority is cruised based and the deciduous timber has not been reserved, applicable volume means the sum of the total net coniferous volume and the total net deciduous volume,

c. Where the harvesting is authorized on a cutting authority area under a BCTS licence, applicable volume means the sum of the total net coniferous volume and the total net deciduous volume;

“Appraisal Data Submission (ADS)” means the information required by the person who determines the stumpage rate to determine the stumpage rate including the forest professional’s signed submission in the form required by the director, and any other information required by the regional manager or district manager;

“BCTS” means BC Timber Sales;

“BCTS licence” means a timber sale licence entered into under section 20 of the Act or section 21 as it was before it was repealed;

“Billing history record” means a record of log scale data derived from a record kept by Timber Pricing Branch of log scale data reported on stumpage invoices issued by the Timber Pricing Branch for timber scaled under section 94 of the Act;

“Bonus Bid” means a bonus bid described in section 103(1)(d) of the Act;

“Bonus Offer” means a bonus offer described in section 103(2) of the Act;

“Chipped” means having been cut into small pieces by a chipper;

“Coniferous cruise volume” means that part of the total net cruise volume which is coniferous timber;

Timber Pricing Branch Introduction

July 1, 2012 1-3

“Controlled Recreation Area” means controlled recreation area as defined in the Resort Timber Administration Act;

“Cruise Based” means a cutting authority where under section 106 of the Act the stumpage payable is calculated using information provided by a cruise of the timber conducted before the timber is cut;

“Cutting Authority” means:

1. A cutting permit issued under:

a. a forest licence,

b. a timber sale licence that provides for cutting permits,

c. a tree farm licence,

d. a community forest agreement,

e. a woodlot licence,

f. a timber licence,

g. a community salvage licence,

h. a master licence to cut,

i. a forestry licence to cut, or

j. a woodland licence,

2. A timber sale licence under which cutting permits have not or will not be issued,

3. All other licences to cut,

4. A road permit;

“Cutting Authority Area” means the area where timber may be harvested under a cutting authority, which has a unique timber mark;

“Deciduous timber” means timber that is not of a coniferous species;

“Decked timber” means timber that has been 100% decked at roadside;

“Director” means director of Timber Pricing Branch of the Ministry of Forests, Lands and Natural Resource Operations;

“District Manager” means:

a. Except as provided in paragraph (b) of this definition, the district manager or district manager’s designate,


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b. Where the cutting authority area being appraised or reappraised is located in a controlled recreation area designated under the Resort Timber Administration Act, then district manager means an employee of the Ministry, to whom the Minister has delegated the minister’s powers and duties under section 2 of the Resort Timber Administration Act;

“Effective Date” means, unless otherwise specified in the manual:

i. the date the stumpage rate is determined when required for advertising for competitive award, or

ii. the effective date of the cutting authority when the stumpage rate is determined for a cutting permit or a direct award licence;

“Executive Director, BCTS” means Executive Director, BCTS or Executive Director, BCTS’ designate;

“F.O.B.” means ‘free on board’. The specified destination point at which ownership of the goods transfers from the seller to the buyer. ‘F.O.B. origin’ would mean the buyer assumes responsibility for the goods, shipping costs and insurance once the goods leave the seller’s premises;

“Forest Professional” means a Registered Professional Forester (RPF), a Registered Forest Technologist (RFT) or a special permit holder acting within the scope of their permit, registered and in good standing with the Association of British Columbia Forest Professionals;

“Fully Appraised” means stand data (site specific or borrowed) has been used by the general appraisal system to calculate an indicated stumpage rate or has been included in an appraisal for a BCTS cutting authority where the upset was set at the variable cost to prepare the timber for sale;

“Harvest Method” means ground skidding, overhead cable, helicopter or horse;

“Hogged Tree Material” means tree residues or by-products that have been shredded into smaller fragments by mechanical action;

“Licensee” means the holder of a cutting authority;

“Manual” means Interior Appraisal Manual;

“Minister” means Minister of Forests, Lands and Natural Resource Operations;

“Ministry” means Ministry of Forests, Lands and Natural Resource Operations;

“Net Merchantable Volume” means unless otherwise specified in the manual, the post reduction cruise volume compiled to the Interior Standard Merchantable Specifications in Table 1-1 of this manual;


July 1, 2012 1-5

“New Construction” means the following construction phases: subgrade construction, placement of additional stabilizing material and the construction and installation of drainage and other pertinent structures;

“Partially Harvested Timber” means timber that has been felled and/or bucked and not yet forwarded to roadside;

“Prescribed Minimum Stumpage Rate” means the minimum stumpage rate prescribed by the Minimum Stumpage Rate Regulation (BC Regulation 354/87);

“Timber Pricing Branch” means the Timber Pricing Branch of the Ministry;

“Reconstruction and Replacement” means replacement or structural repair of a major drainage structure (e.g., replacing stringers, cross ties, or cribbing), or major resurfacing, which means resurfacing sections of more than 0.3 km in length that were initially surfaced but have deteriorated due to long term wear and tear, where stabilizing material was not previously used, or major reconstruction, which means restoring at least 0.1 km of road (per occurrence) that requires complete rebuilding of the subgrade;

“Regional Manager” means a regional executive director of the Ministry or except for section 1.2.1(1)(b), the regional executive director’s designate;

“Regulations” means regulations under the Act;

“Remedial Fence and Wing Fence” means a fence that is required to remedy, reduce or manage the impact of timber harvesting activities on range management;

“Road Permit” means road permit or road timber mark;

“Salvage” except as provided in section 6.4, means a cutting authority area where greater than one-third of the net coniferous cruise volume is attacked by mountain pine beetle or other pests;

“Scale Based” means the stumpage payable is based on a scale of the timber harvested from the cutting authority area in accordance with part 6 of the Act;

“Single Unit” means a cutblock has one continuous boundary and it is not made up of two or more pieces separated by timber that is not within the gross area of the cutblock from the cruise compilation;

“Skyline System” means a cable logging system used to fully suspend logs for protection of the soil, for crossing streams without damage, or to yard logs for long distances. Skyline systems may use intermediate supports to reduce the sag in long cables.

“Species Net Volume” is the species net volume reported in the appraisal summary report from the cruise compilation for the cutting authority area;

“Stand as a Whole (SAAW) Pricing” means that one stumpage rate is determined for all of the net merchantable timber on the cutting authority area. In a cruise based cutting


1-6 July 1, 2012

authority, the single stumpage rate applies to all of the net merchantable volume identified in the cruise conducted in accordance with the Cruising Manual,

“Stud Log Percent” means the net volume of 5 m logs with top diameters under 20 cm expressed as a percentage of the total net cruise volume. The stud log percent is rounded to the nearest whole percentage point;

“Stumpage Appraisal Parameter” means:

a. Interior Average Market Price, d. Lumber Average Market Values, b. BC Consumer Price Index, e. Interior Basic Silviculture Costs by Species, c. US Dollar Exchange rate, f. Final Neutrality Adjustment.

“Suitable Secondary Stand Structure Survey” means a suitable secondary stand structure survey as defined in section 1(4) of the Forest Planning and Practices Regulation

“Timber Harvesting” means the felling or removal of timber other than on road rights-of-way or landings on a cutblock;

“Timber Sales Manager” means the Timber Sales Manager or the Timber Sales Manager’s designate;

“Total Net Coniferous Volume” is the total of the species net volumes for all coniferous species on the cutting authority area;

“Total Net Cruise Volume” means the sum of the species net cruise volumes reported in the appraisal summary report from the cruise compilation for the cutting authority area;

“Total Net Deciduous Volume” is the total of the species net volumes for all deciduous species on the cutting authority area,

“Tributary Cutting Authority Area” means a cutting authority area from which timber must be transported over the road that is developed, or a cutting authority area to which bulk fuels, supplies, equipment and harvesting crews necessary to carry out the day-to-day harvesting activities on that area must be taken on a regular basis over the road that is developed.


July 1, 2012 1-7

1.2 Terms of Reference

1. Pursuant to section 105 of the Forest Act the provisions of this manual are policies and procedures to be used in the determination, redetermination and variance of stumpage rates in the Northern Interior Forest Region and in the Southern Interior Forest Region and Manning Park.

1.2.1 Responsibility for Stumpage Determination

1. The following employees are authorized to determine, redetermine and vary stumpage:

a. director and employees of Timber Pricing Branch of the Ministry.

b. regional managers, regional timber pricing co-ordinators, and employees of the regional revenue sections of the Ministry.

2. The employees of the Timber Administration section, Resort Development Branch of the Ministry are authorized to determine or redetermine stumpage rates in accordance with section 6.8(1) or (2).

1.2.2 Stumpage Appraisal Parameters

1. The stumpage appraisal parameters are compiled, calculated, and/or adopted by Timber Pricing Branch.

2. Once approved by the director they become an integral part of this manual.

3. The parameters are published by Timber Pricing Branch.

4. Current and historical parameters may be found at the following web site:

http://www.for.gov.bc.ca/hva/

1.2.3 Minimum Stumpage Rate

A stumpage rate or an upset determined using this manual shall not be less than the prescribed minimum stumpage rate.


1-8 July 1, 2012

1.3 Numbering and Calculation Conventions

1. The following exemplifies the numbering system used in this manual:

1. = 1.1 or 1.1.1. =

1.1.1 (2) = 1.1.1(2)(a) = Table 4-2 =

Chapter. Section. Section with subsection. Section with subsection and paragraph. Table 2 within chapter 4.

2. The calculation of the Interior Average Market Price must be performed in accordance with the specifications contained in the documents titled: “Specifications: The Interior Market Pricing System” as updated from time-to-time, and “Interior Market Pricing System-Update” as updated from time-to-time.

3. Where a value is specified as a limit, for example a constraint or a requirement for an equation,

a. The value will be treated as an absolute value, and

b. An actual measurement or record will not be rounded before use unless otherwise specified in this manual.

4. Each calculation of a tenure obligation adjustment or specified operation expressed in dollars per cubic metre will be rounded to the nearest cent.


July 1, 2012 1-9

1.4 Cutblocks within a Cutting Authority Area

1. Cutblocks within a cutting authority area must:

a. Constitute a single unit,

b. Be within the same forest district,

c. Be tributary to a common point of appraisal (unless included in a blanket salvage permit),

d. Must not exceed a maximum distance of ten kilometres between the furthest boundaries of the furthest cutblocks, except when required for blanket salvage.

2. A cutting authority shall not include both an authorization to harvest on a cutblock where 35% or more of the net merchantable coniferous timber is red and grey mountain pine beetle attacked Lodgepole pine and an authorization to harvest on a cutblock that does not have those same characteristics.


1-10 July 1, 2012

1.5 Appraisal Data Submission Requirements

1.5.1 Cruise Information

1. Unless otherwise specified by the director, cruise data must be gathered and compiled according to the approved interior standard timber merchantability specifications in Table 1-1 below and in accordance with the following Ministry publications:

a. Cruising Manual at the following web site:

http://www.for.gov.bc.ca/hva/manuals/cruising.htm

b. Cruise Compilation Manual at the following web site:

http://www.for.gov.bc.ca/hva/manuals/cruisecompilation.htm

2. When cruise information is submitted to the district manager or the regional manager in order to determine a stumpage rate or an upset stumpage rate, that information must include:

a. The Cruise Compilation Report, and

b. The ASCII data files (if applicable, also the percent reduction ASCII file).

3. When requested by the district manager, a copy of the original field data must be supplied by the licensee.

Table 1-1 Interior Timber Merchantability Specifications

Description

The following standard timber merchantability specifications must be used for all appraisals.

Stumps (Measured on the side of the stump adjacent to the highest ground.)

no higher than 30.0 cm

Diameter (outside bark) at stump height

lodgepole pine: all timber that meets or exceeds 15.0 cm

all other species: all timber that meets or exceeds 20.0 cm

Top diameter (inside bark or slab thickness)

for all species and ages, except cedar older than 141 years, all timber that meets or exceeds

10.0 cm

Top diameter (inside bark or slab thickness)

for cedar older than 141 years, all timber that meets or exceeds

15.0 cm

Minimum length

log or slab 3.0 m


July 1, 2012 1-11

1.5.1.1 Comparative Cruise Data

1. Comparative cruise data is cruise data from an existing cutting authority area with similar stand and terrain characteristics that is used in the appraisal of a new cutting authority area.

2. The district manager may require the selection of a comparable cutting authority to be in accordance with procedures set out in section 2.10 of the Cruising Manual.

3. Except for subsection (5), if there is time to perform a full cruise, then the timber will be cruised.

4. If there is insufficient time to perform a full cruise then comparative cruise data may be utilized:

a. For cutting authorities with volumes greater than 5 000 m3 if:

i. the area is in an approved Emergency Bark Beetle Management Area (EBBMA) as designated by the Minister and within an approved Emergency Management Unit (EMU) as designated by the beetle management coordinator,

ii. the licensee has previously harvested comparative cutting authorities in a timely manner, and

iii. the regional manager has determined that the requirement to perform a full operational cruise will delay expeditious harvesting and result in further damage.

b. When the stumpage rate is determined according to section 6.2(5).

5. Comparative cruise data may be utilized when the stumpage rate is determined according to sections 6.2.1(1)(c)(ii) and 6.7(4).


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1.5.2 Appraisal Data Forms

1. Unless otherwise specified in paragraph (b) of this section, the form of ADS required by the director for:

a. The Market Pricing System is the Electronic Commerce Appraisal System (ECAS) which can be found at:

http://www.for.gov.bc.ca/hva/ECAS/index.htm

A submission in ECAS must be signed by a forest professional.

b. Miscellaneous timber pricing is the Interior Stumpage Rate Request Form (short form). Contact the appropriate regional office for the form. The short form must be signed by a forest professional unless appraised under sections 6.1.1, 6.1.2 or 6.3.

1.5.3 Appraisal Map

The appraisal map must be completed in accordance with the requirements of Appendix IV and must be submitted with the ADS in ECAS.

July 1, 2012 2-1

Appraisals, Reappraisals and

Stumpage Adjustments 2


2-2 July 1, 2012

2.1 Appraisal Process

1. Except where the sawlog stumpage rate or an upset stumpage rate is determined in section 5.1 or chapter 6:

a. an appraisal process is used to determine a stumpage rate for a cutting authority area using the manual in effect on the effective date of the cutting authority.

b. the appraisal is effective on the effective date of the cutting authority.

2. In accordance with section 1.5.2, a forest professional on behalf of a licensee or BCTS shall submit an ADS to the district manager when the licensee or BCTS makes an application for a cutting authority.

3. The district manager may review the ADS, and may inform the forest professional, of any omissions or errors, or provisions of the manual that, in the opinion of the district manager, the forest professional may not have considered.

4. The forest professional may consider the district manager’s information and may revise the ADS.

5. The district manager shall give any information supplied by the forest professional under this section to the person who determines the stumpage rate together with any other information that the district manager considers relevant to the appraisal.

6. The person who determines the stumpage rate may review the ADS, and information supplied by the district manager, and may inform the forest professional, of any omissions or errors, or provisions of the manual that, in the opinion of the person who determines the stumpage rate, the forest professional may not have considered.

7. The forest professional may consider the notification and may revise the ADS.

8. The person who determines the stumpage rate shall consider:

a. the information provided by the forest professional,

b. the information provided by the district manager, and

c. any other information available to the person who determines the stumpage rate that is relevant to the appraisal.

9. The information in ECAS may be changed by the person who determines the stumpage rate in order to determine the stumpage rate.

Timber Pricing Branch Appraisals, Reappraisals and Stumpage Adjustments

July 1, 2012 2-3

10. Once Regional revenue staff determines the upset, BCTS will be advised by email from Timber Pricing Branch’s General Appraisal System of the upset determination.

11. a. Once Regional revenue staff determines the stumpage rate, Timber Pricing Branch’s General Appraisal System will advise those licensees who have submitted an email address that the stumpage determination has been made.

b. The details of the licensee’s stumpage determination will be made available on Timber Pricing Branch’s website.


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2.2 Reappraisals

1. Where these policies and procedures require a reappraisal to be performed, the stumpage rate must be redetermined in accordance with the relevant policies and procedures that are or were in effect as the case may be on the effective date of the reappraisal.

2. Except as provided in subsection (3) or (4) of this section or section 2.2.3 or otherwise directed by the Minister in section 2.2.2.1, a reappraisal is a complete reassessment of the cutting authority area at the time of the reappraisal by the person who determines the stumpage rate taking into account:

a. A revised appraisal data submission submitted by the licensee in accordance with this manual, and/or

b. Information available to the person who determines the stumpage rate.

3. At the time of a reappraisal, initial detailed engineering cost estimates may be re-estimated once after construction in accordance with section 4.3.3(4).

4. Where a reappraisal under sections 2.2.1.2(2) or 2.2.2 is warranted but there isn’t any timber remaining on the cutting authority area to apply the redetermined stumpage rate to, then the reappraisal is redundant and not required.

2.2.1 Changed Circumstances

1. In this manual a changed circumstance means a circumstance where:

a. i. the licensee or a contractor working on the licensee’s behalf has harvested or will harvest at least 15% of the volume of timber on the cutting authority area using a harvest method that is different from the harvest method used in the most recent appraisal or reappraisal of the cutting authority area, and

ii. the different harvest method when taken into account in a changed circumstance reappraisal will produce the highest stumpage rate within the meaning of section 3.1.

b. The licensee or a contractor working on the licensee’s behalf carries out or will carry out development on the cutting authority area such that there will be a difference of at least 15% between:

i. the total appraised development cost estimate if it is recalculated under chapter 4 on the basis of the development actually carried out, to the extent this development is in accordance with chapter 4, and


July 1, 2012 2-5

ii. the total appraised development cost estimate used in the most recent appraisal or reappraisal, where this difference results from circumstances other than a change in the manual or a change as a result of a stumpage adjustment.

c. If the cutting authority is scale based and there has been a change in the harvest area when compared to the appraisal map submitted that exceeds the lesser of:

i. 15 hectares, or

ii. 15 percent of the harvest area for the cutting authority indicated on the appraisal map prior to the change,

d. If the cutting authority is cruise based and there has been a change in the harvest area when compared to the appraisal map submitted that exceeds the greater of:

i. three hectares; or

ii. three percent of the harvest area indicated on the appraisal map prior to the change.

If the change in the harvest area does not exceed the above thresholds of this subsection, the net merchantable area used for billing purposes shall still be updated to the new harvest area in the ministry’s billing system.

e. i. except where timber on a cutting authority area has been damaged by a fire for which the licensee was responsible and the licensee failed to comply with the Wildfire Act or Wildfire Regulations, where timber is authorized for harvest under a cutting authority that has either a fixed stumpage rate or a stumpage rate that is adjusted quarterly and at least 15% of the volume of the timber that was considered in the appraisal of the cutting authority area authorized for harvest under that cutting authority has been suddenly and severely damaged.

ii. where the cutting authority area is reappraised because of sudden and severe damage the only timber that can be considered in the reappraisal is the standing timber remaining on the cutting authority area after the sudden and severe damage.

f. A cutting permit authorizing the harvesting of timber was issued before July 1, 2010 and surrendered on or after July 1, 2010, because of the planned Interior pricing policy changes July 1, 2010, and

i. the volume of all of the timber in all of the cutblocks where harvesting has not started, hereinafter referred to as the remaining timber, is greater than 25% of the volume of timber that was on the cutting authority area when the cutting permit was issued, and


2-6 July 1, 2012

ii. the district manager is satisfied that the remaining timber or harvest method is significantly different from the timber that has been harvested under the cutting permit.

g. A cutting permit authorizing the harvesting of timber on the cutting authority area was issued before July 1, 2010, timber harvesting has started on the cutting authority area, and

i. the right to harvest timber remaining on the cutting authority area hereinafter referred to as the remaining timber has been transferred by the timber sales manager after July 1, 2010 on behalf of the licensee to whom the cutting permit had been issued, and

ii. the district manager is satisfied that the remaining timber or harvest method is significantly different from the timber that was harvested on the cutting authority area prior to the transfer of the right to harvest the remaining timber.

h. The most recent appraisal or reappraisal included:

i. a Skyline or Camp specified operation; or

ii. root disease control as part of the tenure obligation adjustment; and

iii. a Camp was never used or skyline, or root disease control was never carried out on the cutting authority area in an amount greater than three hectares or three percent of the area indicated on the appraisal map; or

iv. the operations listed in paragraphs i. through iii. in this subsection were not included in the most recent reappraisal or reappraisal but were subsequently carried out by the licensee beyond the threshold in paragraph iii. of this subsection and met the requirements of this manual.

2. Except as provided in subsections 3 or 4 of this section, where a changed circumstance has occurred with respect to a cutting authority area, other than a cutting authority area that is subject of a road permit or a cutting authority area with a non-adjusting stumpage rate, the cutting authority area must be reappraised in accordance with section 2.2.1.1.

3. Where a licensee has notified the ministry in writing that a changed circumstance has occurred and the indicated stumpage rate for the cutting authority area has been less than $0.25/m3 since the cutting authority area was first appraised, and the indicated stumpage rate that would be calculated in a changed circumstance reappraisal would remain less than $0.25/m3, a changed circumstance reappraisal is not required.

4. Where a licensee has notified the ministry in writing that a changed circumstance has occurred, log transportation activities have been completed on the cutting authority area and the amount of stumpage payable as a result of a changed circumstance


July 1, 2012 2-7

reappraisal under section 2.2.1.1 would be reduced, the changed circumstance reappraisal must be done only at the licensee’s request.

5. Where a cutting authority is reappraised because of a changed circumstance, any bonus bid or bonus offer in existence does not change and remains in effect.

2.2.1.1 Changed Circumstance Reappraisal Procedure

1. Where the cutting authority was issued prior to August 1, 2005, the licensee must submit an appraisal data submission to the district manager immediately if a changed circumstance has occurred.

2. a. Except for a changed circumstance under section 2.2.1(1)(e), the licensee must submit an appraisal data submission to the district manager within sixty days of completion of log transportation activities or no later than thirty days prior to the expiry of the cutting permit whichever comes first, if the cutting authority must be reappraised because of a changed circumstance under section 2.2.1.

b. If the change in harvest area referred to under sections 2.2.1(c) and (d) includes a portion of the cutting authority area for which cruise information is not available, the person who determines the stumpage rate may use the best information that person deems available in the reappraisal.

c. For a changed circumstance under section 2.2.1(1)(e), the licensee must submit an appraisal data submission to the district manager within thirty days of the date when the event that caused the sudden and severe damage stopped on the cutting authority area.

d. Thereafter the changed circumstance procedure for paragraph (a) or (b) of this section is the same as required by sections 2.1(3) to 2.1(11).

3. Where the district manager believes that a changed circumstance has occurred under

subsections (1) or (2) of section 2.2.1, and the licensee fails to provide the district manager with an appraisal data submission as described in subsection (2) of this section, the district manager may initiate a changed circumstance reappraisal using information that is available to the district manager and may notify the licensee of that action. Thereafter the changed circumstance reappraisal procedure is the same procedure as that required by section 2.1(6) through 2.1(11).

2.2.1.2 Effective Date of a Changed Circumstance Reappraisal

1. Except as otherwise provided in this section, a reappraisal because of a changed circumstance is effective on the day after the effective date of the most recent appraisal or reappraisal of the cutting authority area prior to the changed circumstance reappraisal.

2. Where the cutting authority to which the reappraisal pertains was issued prior to August 1, 2005, and the date of the changed circumstance is on or after July 1, 2010,


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the changed circumstance reappraisal is effective on the day after the date the changed circumstance reappraisal stumpage rate is calculated.

3. Where the changed circumstance is a result of sudden and severe damage referred to in subsection 2.2.1(1)(e), the effective date of the reappraisal is the first day of the month following the date when the event that caused the sudden and severe damage stopped on the cutting authority area.

4. Except as provided in subsection 2 of this section, where the most recent reappraisal is a minister’s directed reappraisal under section 2.2.2 or an insect damage reappraisal under section 2.2.3, the effective date of a changed circumstance reappraisal:

a. Under section 2.2.1(1)(f) or 2.2.1(1)g is the day after the date of the most recent appraisal or reappraisal that is not a reappraisal under section 2.2.2 or section 2.2.3.

b. Under any other subsection of this section, is the day after the date of the most recent appraisal or reappraisal that is not a reappraisal under section 2.2.2 dated after July 1, 2010, or a reappraisal under section 2.2.3.

2.2.2 Minister’s Direction

1. The Minister may at any time direct the determination, redetermination or variance of a stumpage rate and that,

a. a determined, redetermined or varied stumpage rate be effective on any future date, and that,

b. the determination, redetermination or variance be made in accordance with any other directions that the Minister may direct.

2.2.2.1 Minister’s Direction Procedure

1. The licensee shall submit to the district manager an interior appraisal data submission, if requested by the district manager within forty-five days of the Minister’s direction.

2. Thereafter, the procedure for determining, redetermining or varying a stumpage rate under section 2.2.2 shall be the same procedure as that required by subsections 2.1(3) through 2.1(11) except as may otherwise be directed by the Minister.


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2.2.3 Reappraisals Due to Insect Damage

1. a. A cutting authority with an adjustable stumpage rate or a cutting authority issued under a licence entered into under section 21 of the Act as it was before it was repealed may be reappraised on or after April 1, 2006 only twice under this section during the term and all extensions of the cutting authority on the basis of a revised appraisal data submission if the licensee submits a revised appraisal data submission to the district manager.

b. The revised appraisal data submission is the appraisal data submission that was used in the most recent appraisal or reappraisal of the cutting authority area prior to the revision, hereinafter referred to in this section as the original ADS, with changes permitted only to the cruise data in the original ADS in accordance with the paragraphs (c) and (d) of this subsection.

c. The licensee may either:

i. update the insect attack code information from the field for each species of timber in the cruise data for codes 1, 2, 3, 5, 6, 7 and 8 as defined in the Cruising Manual and recompile the cruise for the cutting authority area by using the cruise data from the cruise in the original ADS for the plots in that part of the cutting authority area where timber has been harvested and combining that with the cruise data with updated insect attack codes for the plots in that part of the cutting authority area where timber has not been harvested, or

ii. recompile the cruise data that was in the cruise in the original ADS.

d. If a cutting authority area is reappraised in accordance with section 2.2.1.1 and the effective date of the changed circumstance reappraisal is prior to a reappraisal for that cutting authority area under section 2.2.3, then cutting authority area shall be reappraised subsequent to the changed circumstance reappraisal using only the same information and effective date as the original reappraisal under section 2.2.3 (except for information that has changed as a result of the changed circumstance reappraisal under section 2.2.1).

e. Notwithstanding any other paragraph of this section, other data must be changed if it is required by the manual in effect at the time of the reappraisal and was not submitted in the original ADS.

2.2.3.1 Insect Damage Reappraisal Procedure

1. The insect damage reappraisal procedure is the procedure required by section 2.1(2) through 2.1(7).


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2.2.3.2 Effective Date of an Insect Damage Reappraisal

1. The effective date of an insect damage reappraisal is the first day of the month following the month in which the district manager receives the revised appraisal data submission.


July 1, 2012 2-11

2.3 Stumpage Adjustments

1. Unless otherwise specified by this manual or by the Minister, and subject to section 6.6, a stumpage rate must be adjusted quarterly on each of January 1, April 1, July 1 and October 1, of each year.

2. The adjustment will be the recalculation of the stumpage rate that was determined in the most recent appraisal or reappraisal by using:

a. the appraisal data used in the most recent appraisal or reappraisal,

b. the manual in effect on the effective date of the most recent appraisal or reappraisal, and

c. the stumpage appraisal parameters that the director approves for use in the recalculation of stumpage rates for that quarter.

3. Woodlot Adjustable Stumpage Rates:

The stumpage rate for a cutting authority issued for a woodlot that meets the criteria in section 6.1.2(2) shall be adjusted quarterly.


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2.4 Correctable Errors

1. In this section, a correctable error means:

a. an error in transcribing or compiling approved cruise field data or in the application of approved loss factor and taper equations,

b. an error in a calculation made as part of the appraisal data submission,

c. an error in transcribing the data from an appraisal data submission or in performing the calculations specified in the manual, or

d. an error in the calculation or application of published appraisal parameters.

2. Where a person believes that a correctable error has been made in a stumpage determination, that person shall give written notice of the correctable error as follows:

a. in the case of an appraisal or a reappraisal, the notice shall be given to the regional manager, and in the case of a quarterly adjustment, the notice shall be given to the director, and

b. the notice shall identify the stumpage determination, the correctable error, and the cause of the correctable error to the extent reasonably possible.

3. The regional manager or the director, upon receipt of the notice shall determine whether or not a correctable error was made.

4. Where the regional manager or the director determines that a correctable error has not been made, the person who determined the stumpage rate or director shall notify the person who gave the notice of the correctable error.

5. Where the regional manager or the director determines that a correctable error has been made, then:

a. the regional manager or the director will notify the person who gave the notice of the correctable error,

b. the regional manager or the director will take reasonable steps to ensure that all licensees who may have been affected by the error are informed of the decision, and

c. i. where the regional manager determines that a correctable error has been made in an appraisal or a reappraisal the cutting authority area shall be reappraised to correct the error by the person who determined the stumpage rate.

ii. the effective date of the reappraisal shall be the first day of the month following the date on which the notice of the correctable error was received


July 1, 2012 2-13

by the regional manager.

d. i. where the director has determined that a correctable error has been made in the calculation of a quarterly stumpage adjustment, the adjustment must be correctly recalculated unless the cutting authority, the appraisal manual or the application and tender for a timber sale licence specifies that the stumpage rate is fixed, and

ii. the effective date of the redetermined rate shall be the first day of the month following the date on which the notice of the correctable error was received by the director.


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2.5 Redetermination of Stumpage Rate by Agreement

1. Where, within twenty-one days of the date of a Stumpage Advisory Notice, the person to whom the Notice has been sent and an employee authorized to redetermine a stumpage rate under section 1.2.1 of this manual agree, the stumpage rate set out in the Notice, hereinafter referred to as the original stumpage rate, may be redetermined by the employee in accordance with manual in effect on the effective date of the original stumpage rate, and the redetermined stumpage rate shall be effective on the effective date of the original stumpage rate.

2. The twenty-one day period referred to in subsection (1) of this section may be extended by agreement between the person to whom the Notice has been sent and the employee.

July 1, 2012 3-1

Final Estimated Winning Bid 3


3-2 July 1, 2012

3.1 Appraisal Methodology

1. Except as provided in section 5.1 and chapter 6 of this manual, the licensee must submit an appraisal data submission that is capable of being used by the person who determines the stumpage rate for the cutting authority area in a manner that will produce the highest stumpage rate.

2. Except as provided in section 5.1 and chapter 6, the person who determines the stumpage rate must estimate the stumpage rate for a cutting authority area in a manner that will produce the highest stumpage rate for the cutting authority area.

3. For each part of the cutting authority area, the person who determines the stumpage rate must use the procedures in this manual that must be used for the harvest method that produces the highest stumpage rate other than a method that the district manager states is unsuitable for that part of the cutting authority area.

4. Regardless of the harvest method that the holder of a cutting authority uses or intends to use on the cutting authority area or a part of the cutting authority area, or any other fact or law pertaining to the harvest method to be used, the district manager when deciding whether a harvest method is unsuitable may only consider:

a. the physical features and terrain stability of the cutting authority area and the areas through which access to the cutting authority area may be gained,

b. the physical features of the areas outside of the cutting authority area that may be affected by the harvesting in or the transportation of the timber from the cutting authority area,

c. visual quality objectives.

Timber Pricing Branch Final Estimated Winning Bid

July 1, 2012 3-3

3.2 MPS Lumber Selling Prices

1. Selling prices for MPS are based on three-month averages of lumber market values reported by licensees and published monthly by Timber Pricing Branch. They are aggregated by zone based on Points of Appraisal in Table 3-4. When the average market values (AMVs) are approved by the director they become an integral part of this manual.

3.2.1 Lumber AMVs

1. Unless otherwise specified in this section, the species lumber AMVs are based on a three month average of lumber selling prices two (2) months prior to the date of publication. They are derived by dividing the total sales value by the total sales volume.

2. If there is insufficient data reported the AMVs for a species may be determined using a procedure approved by the director.

3. The volume that is manufactured to Canadian Lumber Standard/American Lumber Standard (CLS/ALS) sizes is reported in foot board measure (fbm). Lumber manufactured in non-CLS/ALS sizes is adjusted to equivalent CLS/ALS sizes. The total volume for each species includes all sizes and grades of rough and dressed lumber in the green and dried state. Also included is finger-jointed lumber and machine stress rated lumber.

4. The total net sales value for each species or species group is reported in Canadian dollars (FOB) mill.

3.2.2 Calculation of the Real Stand Selling Price (RSP)

1. The total lumber selling price (SP) in $/m3 is determined for each coniferous species using lumber recovery factors (LRF) from the cruise compilation summary, LRF update add-ons and the current applicable lumber AMV for the species and zone.

a. Zonal LRF update add-ons are found in Table 3-1, by species.

b. Lumber AMVs as published every month.

c. Calculation of total species lumber selling price.

i. If the cruise LRF for Lodgepole pine (LO) has been reduced for Mountain Pine Beetle volume, the reduction must be added back as follows:

Final LO Cruise LRF = LO Cruise LRF + (LO green attack volume * 3 + LO red attack volume * 33 + LO grey attack volume * 83) ÷ LO pine volume.

ii. Species Appraisal LRF = Species Cruise LRF + Species LRF update add-on.

iii. Species SP ($/m3) = Species AMV($/mbm)/1000 * Species Appraisal LRF.


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d. The stand SP is the volume-prorated sum of the species SP.

e. The real stand SP (RSP) is the stand SP divided by the CPIF, as defined in section 3.3.

Table 3-1 LRF Update Add-ons for MPS

Species

Zone 5 (Northern Interior)

Zone 6(Skeena)

Zone 7 (Southern Interior)

Zone 8 (Southern Cariboo)

Zone 9 (Ft. Nelson-Peace)

Lodgepole Pine 107 81 89 94 92

Spruce 128 107 113 115 110

Balsam 120 101 102 108 101

Douglas Fir 97 - 76 84 -

Larch 93 - 76 84 -

Cedar 72 52 58 60 -

Hemlock 74 55 61 65 -

White Pine 91 - 74 80 -

Yellow Pine - - 77 88 -


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3.3 Estimated Winning Bid Variables

Where volume data is used in the calculation of the variable that calculation must include the total net deciduous volume unless otherwise indicated in the description of that variable below.

RSP = Real Stand Selling Price for coniferous species ($/m3). See section 3.2.

PC = Fraction of harvest method volume that is appraised as partial cut. PC = (100 – CAPCUT %)/100. See section 4.5 for definition of CAPCUT %. The 80% limit in the definition of CAPCUT in section 4.5 does not apply.

VOL = Total net coniferous volume (m3).

a. If the cutting authority being appraised is a BCTS licence, use the total net coniferous volume from the cutting authority area cruise compilation.

b. If the licence is indicated in the small volume table and procedures approved by the Director, the initial small volume (ISV) is the greater of:

i. The volume of the cutting authority being appraised, or

ii. The volume indicated in the table and procedures approved by the director for the licence under which the cutting authority being appraised has been issued.

If the ISV is less than the applicable zonal volume indicated in Table 3-3 for the cutting authority being appraised, then use the ISV. If not, use the Zonal volume from Table 3-3. Otherwise,

c. Use the applicable zonal volume from table 3-3 for the cutting authority being appraised.

CABLE = Fraction of total harvest method volume that is appraised as overhead cable yarding (includes Skyline < 600m horizontal)

HELI = Fraction of total harvest method volume that is appraised as helicopter yarding.

FIRE = Fraction of total net coniferous volume that is fire damaged.

CYCLE = Hauling round trip cycle time (Primary CT (hrs) + Secondary


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CT (hrs)). See sections 3.5.1.1 and 3.5.1.3.

HEMBAL = Fraction of total net coniferous volume that is hemlock and balsam.

CEDAR = Fraction of total net coniferous volume that is cedar.

VPT = Cutting permit average volume per tree from cruise (m3).

SLOPE = Cutting permit average slope from cruise (%).

DANB = Average number of bidders by district from the auction dataset (see Table 3-2).

DECAY = Prorated coniferous species decay % (from cruise)/100.

CEDAR DECAY

= Cedar decay % (from cruise)/100

ZONE 6 = Skeena selling price zone variable. Zone 6 = 1 if cutting authority is appraised with selling price zone 6, otherwise zone 6 = 0.

ZONE 9 = Fort Nelson - Peace selling price zone variable. Zone 9 = 1 if cutting authority is appraised with selling price zone 9, otherwise Zone 9 = 0.

VPH_CON = Net coniferous volume per hectare (m3/ha).

OTHER

ATTACK

= Fraction of total net coniferous cruise volume that is other insect attack (not green, red, or grey mountain pine beetle attack).

CB = Cruise based billing for mountain pine beetle damage variable.CB = 1 if section 6.9 is applicable, otherwise CB = 0.

AUC2011 = 2011 Auctions variable. AUC2011 = 1.

HWY = 1 if primary haul method is Highway, otherwise HWY = 0.

ER = Exchange Rate ($US per $C). Bank of Canada three-month average rate beginning five months prior to the stumpage rate effective date, as published by Timber Pricing Branch.

CD = Competitive Deciduous Equals 1 if the upset stumpage rate is determined under section 5.1.1(5), otherwise CD = 0.

DECID = Fraction of deciduous volume of total net cruise volume.

CPI = Monthly B.C. Consumer Price Index (CANSIM 326-0020, 2002 = 100) x 1.1787.


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CPIF = Consumer Price Index Factor calculated as CPI/109.3.

FIR = Fraction of total net coniferous volume that is Douglas Fir.

DRY BELT = Fraction of area in Dry Belt Douglas Fir Zones as per the definition in the Cruising Manual.


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Table 3-2 District Average Number of Bidders (DANB)1

Forest District DANB Forest District DANB

100 Mile House 4.0 Kootenay Lake 2.4

Arrow Boundary 2.3 Mackenzie 1.7

Cascades 3.9 Nadina 3.4

Central Cariboo 4.4 Okanagan Shuswap 3.4

Chilcotin 3.0 Peace 1.7

Columbia 2.5 Prince George 3.5

Fort Nelson 1.0 Quesnel 4.3

Fort St. James 2.1 Rocky Mountain 2.2

Headwaters 2.6 Skeena Stikine 3.2

Kalum 1.9 Vanderhoof 2.0

Kamloops 3.7

Table 3-3 Zonal Volume2

Zone Volume (m3)

5 64945

6 41209

7 OK 50971

7 SE 43154

8 62532

9 34566

1 From the 5-year auction dataset.

2 For the purposes of applying the volume variable in the estimated winning bid equation determine the applicable selling price (SP) zone based on the POA from Table 3-4 used in the appraisal. If in SP zone 7, then determine the district. Zone 7 is split into 2 components:

7OK = Cascades Forest District, Kamloops Forest District, Okanagan Shuswap Forest District, 100 Mile House Forest District.

7SE = Headwaters Forest District, Columbia Forest District, Prince George Forest District, Central Cariboo Forest District, Quesnel Forest District, Arrow Boundary Forest District, Rocky Mountain Forest District, Kootenay Lake Forest District.


July 1, 2012 3-9

3.4 Estimated Winning Bid Equation

Using the variables defined in section 3.3, the selling price calculated in section 3.2.2 and the equation below, calculate the estimated winning bid (EWB).

EWB ($/m3)

= [ 22.23 + 0.157 * RSP – 3.35 * PC + 1.12 * ln (VOL/1000) – 8.32 * CABLE – 62.79 * HELI – 12.56 * FIRE – 1.39 * CYCLE – 11.92 * HEMBAL + 37.39 * CEDAR * (1 – CEDAR DECAY) * (1 – ZONE6) – 9.20 * FIR * DRY BELT – 0.0376 * SLOPE + 1.046 * DANB – 16.70* DECAY – 5.60 * ZONE9 – 4.07 * AUC2011 + 6.03 * In (VPT) + 0.494 * HWY – 11.01 * ER – 8.59 * CD * DECID + 1.76 * ln (VPH_CON) – 5.83 * [OTHER ATTACK * (1 - CB)] – 5.42 * CB] * CPIF

If EWB less than $0.25/m3 then EWB = $0.25/m3

Note: ln = natural logarithm.


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3.5 Log Transportation

The log transportation phase covers all aspects of log movement from the place of initial loading to the point of appraisal, including truck haul, rail, water and other specialized transportation. The use of section 3.5.1.1(3)(c) does not affect any other provision that requires the use of the point of appraisal, as per section 3.5.2.

3.5.1 Cycle Time Variables

3.5.1.1 Primary Cycle Time (CT):

1. The cycle consists of loading, hauling, weighing, unloading, return time, and unavoidable delays. The cycle time will normally be determined by taking into consideration all the factors that may affect it: distance, expected rate of speed, necessary delays, expected standard of roads and their maintenance, traffic density, and seasonal weather conditions.

2. If a district has developed standard cycle time schedules from specific road junctions to the point of appraisal, the person who determines the stumpage rate must use these schedules to calculate the Primary Cycle Time, except to the extent that he or she considers variation necessary to account for sudden and significant changes in road accessibility not reflected in the existing schedules.

3. For appraisal purposes, weighted average Primary Cycle Time (CT) is the estimated time in hours (rounded to the nearest 0.1 hour) for transporting logs from the centre of a cutting authority area to:

a. the point of appraisal as per section 3.5.2,

b. the appraisal place of unloading in the case of water or rail transport, or

c. where the regional manager is satisfied that a transfer of current cutting rights to address a bark beetle infestation will result in:

i. equal or higher sawlog stumpage rates for the timber to which the current cutting rights are transferred to, when compared to the sawlog stumpage rates for the timber where the current cutting rights are transferred from, and

ii. an increase in milling consumption of beetle infested timber by the licensee whose current cutting rights are transferred, then

the place that would have been the point of appraisal if the timber had been harvested in the area from which the current cutting rights are transferred from.

4. To determine weighted average primary cycle time:

a. establish the geographical centre point of each cutblock and project a line from this point to the nearest road. The intersection of that line and the nearest road is the junction for the cutblock.


July 1, 2012 3-11

b. from the junction in subparagraph over which (a), determine the cycle time to the nearest point over which all appraised timber on the cutting authority area must travel on the way to the POA. This will be the common junction.

c. weight the cycle time from the junction for each cutblock by the cutblock volume to determine the average weighted cycle time to the common junction.

d. Determine the cycle time from the common junction to:

i. the point of appraisal as per section 3.5.2,

ii. the appraisal place of unloading,

iii. if the conditions under section 3.5.1.1 (3)(c) are met, then

the place that would have been the point of appraisal if the timber had been harvested in the area from which the current cutting rights are transferred from.

5. Unavoidable delays are periods when the truck is on the job but not operating due to unpredictable delays such as; tightening binder chains, minor repairs made by driver, checking and adjusting brakes, minor delays prior to loading and unloading, refuelling, etc. Unavoidable delay time does not include any breakdown which requires shop repair, the services of a skilled mechanic, or a spilled load of logs. The time for load, unload and unavoidable delay is set at 75 minutes for cable yarding systems and 60 minutes for all other systems.

6. Total CT is the sum of the times calculated under subsections 4(c), 4(d) and 5.

3.5.1.2 Haul Method

Cost estimates do not recognize different types of logging trucks. The estimate is based upon the possible haul method, either highway or off-highway and not specifically on the licensee's particular method.

Highway hauling is assumed when loaded logging trucks must travel in part over roads administered under the Highway Act, without truck-to-truck transfer, to the point of appraisal, or on roads administered under the Industrial Road Act and Forest Service Roads as defined in Forest Act where prolonged known road restrictions prevent the use of oversize loads.

Off-highway hauling is assumed when loaded logging trucks can travel over roads administered under the Industrial Road Act and Forest Service Roads as defined in Forest Act to the point of appraisal, or to a recognized reload. Where prolonged known restrictions (e.g., bridge load limit, narrow road, through rock cut, Regulations under the Workers Compensation Act, etc.) prevent the use of oversize loads, highway haul is assumed.


3-12 July 1, 2012

3.5.1.3 Secondary Haul

Secondary haul is when logs must be truck hauled between the dewater and reload site to the appraisal point.

3.5.2 Point of Appraisal

1. The points of appraisal that may be considered for use in the appraisal are set out in Table 3-4.

2. The point of appraisal that when used in the calculation of the stumpage rate will produce the highest stumpage rate for the cutting authority area is the point of appraisal used unless:

a. five years have passed from the date that a milling facility was permanently rendered incapable of producing lumber and chips, and

b. it was the only milling facility associated with that point of appraisal.

3. Where a point of appraisal cannot be selected under subsection (2) of this section because of the conditions of paragraphs (a) and (b) of that subsection, the point of appraisal that produces the next highest stumpage rate is used.

4. The process in subsection (3) of this section is continued until a point of appraisal can be selected without being excluded by the conditions of paragraphs (2)(a) and (b).

5. Except for Table 3-3, the selling price zone in Table 3-4 for the point of appraisal selected under paragraphs (2), (3) or (4) must be used in the appraisal.


July 1, 2012 3-13

Table 3-4 Points of Appraisal

Northern Interior (Zone 5)

Bear Lake Burns Lake Clear Lake Engen

Fort St. James Fraser Lake Houston Isle Pierre

Mackenzie Prince George Quesnel

Smithers Strathnaver Vanderhoof

Skeena (Zone 6)

Terrace Hazelton Kitwanga

Southern Interior (Zone 7)

Adams Lake Armstrong Canal Flats Canoe Castlegar Craigellachie Creston Elko

Galloway Grand Forks Kamloops Kelowna Lavington Lumby McBride

Merritt Midway Okanagan Falls Princeton Radium Revelstoke Slocan

Thrums Valemount Vavenby Westbank Ymir

South Cariboo (Zone 8)

100 Mile House Chasm Lytton Squamish Williams Lake

Fort Nelson - Peace (Zone 9)

Chetwynd Fort St. John

6. The following Points of Appraisal will expire on the dates indicated: Okanagan Falls

(November 30, 2012), Kamloops (May 12, 2013), Clear Lake (April 30, 2016).


3-14 July 1, 2012

3.6 Specified Operations

1. Only the specified operations described in sections 3.6.1 to 3.6.6 may be considered in an appraisal or reappraisal.

2. Where appropriate, specified operations are weighted according to the applicable net cruise volume.

3. Before a specified operation is used in an appraisal it must be approved by the person who determines the stumpage rate and the supporting information must be made available upon request.

3.6.1 Water Transportation

Water transportation occurs when logs must be transported by water between the cutting authority and the point of appraisal or reload. This includes the costs of strapping logs on the truck, dumping, booming, developing and operating dumping and booming grounds, and towing. The specified operation for reservoir lakes applies to all marine appraisals and to Arrow, Kinbasket, Ootsa, Revelstoke and Williston Lakes. All other lakes receive the natural lake specified operation.

1. Dump and Boom:

Reservoir Lakes and Marine: = 2.01/m3

Natural Lakes: = 2.01/m3

2. Tow:

All = 1.31/m3

3. Dewater and Reload:

All = 1.36/m3

Only considered if the mill infeed is not located on the same lake, or a dam transfer is required.

3.6.2 Special Transportation Systems

A special transportation system specified operation may be used in the appraisal where geographic conditions dictate its use.

The cost estimates include all costs associated with servicing the appropriate cutting authorities, (excluding all on-site costs of owning and operating a camp facility) and operation of bubble systems where applicable.


July 1, 2012 3-15

The recognized special transportation systems are as follows:

1. Railway

a. Truck-to-Rail Transfer

When logs are appraised by railway for part of the way between the cutting authority and the point of appraisal, the cost estimate for the truck-to-rail transfer part of the phase is:

All = 1.36/m3

b. Railway Transportation

The railway transportation cost estimate is based on the following table for the points of origin shown. Otherwise, the best information on hand is used.

Table 3-5 Rail Log Transportation

Origin Cost Estimate Point of Appraisal

Leo Creek $13.18/m3 Fort St. James

Lovell $17.31/m3 Fort St. James

Bear Lake $24.27/m3 Fort St. James

Minaret Creek $26.66/m3 Fort St. James

Niteal $23.23/m3 Fort St. John


3-16 July 1, 2012

2. Barge/Ferry Used for Truck Haul (Private)

When a truck haul road is interrupted by a body of water and the operation of a barge/ferry system is the most efficient means to provide a transportation link to harvesting areas, the specified operation for this phase, regardless of ownership is:

All lakes = 5.76/m3

3. Barge/Ferry Not Used for Truck Haul (Private)

When a cutting authority can be served only by water, and daily (operating days only) ferry/barge services are feasible for crew transportation, the specified operation for this phase, regardless of ownership is:

All lakes = 1.29/m3

3.6.3 Camp Costs

1. A camp specified operation may be included in an appraisal if all of the criteria in this section are met for the cutting authority area being appraised.

2. Workers, who work on the cutting authority area, will reside in the camp and travel each day of work during timber harvesting and hauling operations from the camp to the cutting authority area.

3. The licensee submitting the appraisal must incur the following:

i. Costs to establish the camp either through capital expenditure or through long term lease arrangements, and

ii. Costs to operate and maintain the camp.

4. The camp must:

a. Be comprised of buildings or structures of a permanent or semi-permanent nature,

b. Have a cookhouse(s) and a bunkhouse(s),

c. Have full time camp staff, and

d. Be located outside of a support centre listed in Table 3-6.

Table 3-6 Support Centres

Northern Interior Forest Region

Burns Lake Houston Kitimat Chetwynd Vanderhoof

Kitwanga New Hazelton Fort St. James Fort Nelson

Smithers Stewart Fraser Lake Mackenzie

Terrace Prince George Fort St. John Dawson Creek


July 1, 2012 3-17

Southern Interior Forest Region

Boston Bar Clearwater Hope Canal Flats Castlegar Cranbrook McBride Williams Lake

Kamloops Kelowna Lillooet Creston Fernie Golden Valemount

Merritt Pemberton Penticton Grand Forks Greenwood Invermere Princeton

Salmon Arm Vernon Nakusp Nelson Revelstoke 100 Mile HouseQuesnel

5. Where two licensees share the costs referred to in paragraph three and four of this section for a single camp:

a. There is a written agreement between the two licensees documenting the cost sharing arrangement and specifying each party’s contribution,

b. One of the two licensees does not contribute more than 60% of the costs, and

c. Each licensee compiles a statement of costs net of recoveries and volume attributable to its harvesting operations serviced by the camp.

6. Where a cutting authority area serviced by a camp may be accessed only by rail, the camp specified operation is $2.50/m3, otherwise the specified operation is $1.33/m3for all other types of access.

3.6.4 Skyline and Intermediate Support Skyline

1. Except as provided in paragraph 4 of this section, a skyline specified operation cost estimate may be included in an appraisal for each cut block where the average yarding distance (slope) is greater than 300 meters, or intermediate supports are used. 2. The average yarding distance is determined by:

a. Drawing a series of transects (minimum four) with their origin at a tower landing, being equi-angle apart and measured to the back-line. This is done for each block; blocks will not be amalgamated for the purpose of average yarding distance calculation. The volume for the system is the sum of the volumes of qualifying blocks.

b. Yarding distance will be measured as slope distance from the centre of the tower landing to the falling boundary.

c. The sum of transect lengths divided by the number of transects equals the average yarding distance.

3. Where the ministry and the licensee agree that Forest and Land Management is better served by the use of a “skyline system” in a particular logging chance, then the average yarding distance greater than 300 meters requirement is waived.

4. Cut blocks where the average yarding distance is 600 meters or greater (measured horizontally) will be considered as helicopter in the appraisal.


3-18 July 1, 2012

5. The specified operation is $1.39/m3 for the volume appraised as skyline.

3.6.5 Horse Logging

The specified operation is $8.67/m3 for the volume appraised as horse logging.

3.6.6 High Development Cost

For BCTS timber sale licences only, where the development cost estimate (DC) determined under chapter 4, is greater than $3.09/m3, the high development cost specified operations estimate (HDC) is calculated as follows:

HDC $/m3 = DC – 1.29

If DC < = 3.09, HDC = 0


July 1, 2012 3-19

3.7 Final Estimated Winning Bid

1. Subject to subsection (3) of this section, the Final Estimated Winning Bid (FEWB) is the difference between the estimated winning bid and the total of the specified operations that are applicable to the appraisal or reappraisal of the cutting authority area.

2. Expressed as an equation:

FEWB = EWB - (SO x (CPI ÷ 133.3))

Where:

EWB = The Estimated Winning Bid determined under section 3.4.

SO = The sum of the applicable specified operations in the appraisal or a reappraisal of a cutting authority area as may be calculated under section 3.6 expressed in $/m3.

CPI = Monthly BC Consumer Price Index (refer to section 3.3).

3. Where the FEWB calculated under subsection 2 of this section is less than $0.25/m3, then the FEWB shall be $0.25/m3.


3-20 July 1, 2012

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July 1, 2012 4-1

Tenure Obligation Adjustments 4


4-2 July 1, 2012

4.1 Tenure Obligation Adjustment (TOA)

1. Except where a cutting authority area is the area authorized for harvest under a timber sale licence entered into under section 20 of the Act or section 21 as it was before it was repealed, and subject to subsection (2) of this section, the types of costs that may be used in the calculation of the tenure obligation adjustment in the appraisal or reappraisal of a cutting authority area are:

a. the final forest management administration cost,

b. the total development cost,

c. the final total road management cost, and

d. the total silviculture cost.

2. A cost referred to in subsection 1 of this section may only be used in the appraisal or reappraisal of a cutting authority area if:

a. The holder of the cutting authority authorizing harvesting on the cutting authority area will incur that kind of cost:

i. when exercising an authority or carrying out an obligation under the cutting authority, or

ii. subject to section 4.3, when carrying out an activity on a road when acting under the authority of the Crown, a road permit holder, a road use permit holder, or a private road owner.

3. In this chapter:

a. “development” means road development, cattleguards, fencing and pipeline crossings.

b. "road" includes a bridge, drainage and any other pertinent structure that is part of the road.

4. The tenure obligation adjustment is calculated under section 4.9.

Timber Pricing Branch Tenure Obligation Adjustments

July 1, 2012 4-3

4.2 Administration Costs

4.2.1 Forest Management Administration (FMA)

Forest management administration costs are those costs directly related to supervision and administration of the activities listed below:

Office Operations, Archaeological surveys,

Scaling, Waste and Residue surveys,

Cruising, Right-of-way easements,

Environmental Protection, Foreshore and other land leases,

Consultants fees (section 4.3.3), Tree marking Beetle probing & Pheromone baiting,

Engineering (road layout, survey including geotechnical surveys, and design, other than those applicable as engineered cost estimate).

Suitable Secondary Stand Structure Survey.

The forest management administration cost estimate in an appraisal is determined as follows:

FMA ($/m3) = 0.8748 + (0.2318 x CP slope %)

Where:

CP Slope % - is the cutting permit average slope from the Cruise Appraisal Summary Report.

There is a minimum value of $1.20/m3 for this equation and a maximum value of $14.19/m3.

4.2.2 Final Forest Management (FFMA)

1. For cruise based cutting authorities:

FFMA ($/m3) = FMA ($/m3)

2. For scale based cutting authorities:

FFMA ( $ m3)⁄ = FMA ( $ m3⁄ ) * TNCV m D m

TNCV m

Where:

TNCV = Total net coniferous volume from the cruise

D = Total net deciduous volume from the cruise


4-4 July 1, 2012

4.3 Development

1. The total development cost estimate in an appraisal or reappraisal must be determined in accordance with and subject to the conditions of this section.

2. There are two categories of development, namely:

a. New construction projects.

b. Reconstruction and replacement projects.

3. A development cost estimate that may be calculated under this section is calculated for each road, bridge or other drainage structure that is required to be newly constructed, reconstructed or replaced by the licensee on Crown land, or as provided in section 4.3.1.2, in order for the licensee to access Crown timber that it is authorized to harvest.

4. The total development cost estimate is the total of all of the development cost estimates that are calculated under subsection 3 in accordance with the procedures in the document titled “Specifications: the Interior Market Pricing System.”

5. The two methods of estimating development costs are as follows:

a. Tabular cost estimate: A tabular cost estimate is made in accordance with sections 4.3.2 through 4.3.2.6 when the project is a new construction project, other than a situation listed in section 4.3.3(7).

b. Detailed engineering cost estimate (ECE): an ECE is made in accordance with sections 4.3.3 and 4.3.3.1 when:

i. a new construction project is a situation listed in section 4.3.3(7), or,

ii. the project is a reconstruction or replacement project.

6. Subject to section 4.3.1.4 and to subsection 12 of this section, the development cost estimate of a project, or the licensee’s share of the cost of a project, that has been authorized may only be used in the appraisal or reappraisal of the licensee’s first fully appraised tributary cutting authority area that is authorized for harvest by the licence under which or because of which that authorization has been given.

7. A development cost allocation made in accordance with section 4.3.1 applies to all development cost estimates made under this section.

8. Where a licensee undertakes a new construction project or a reconstruction or replacement project using materials that it has either purchased from a person who is not at arm’s length from the licensee or that it has previously used at another location, the cost estimate of the project may only include the cost of:


July 1, 2012 4-5

a. dismantling the materials at the site where they were previously used,

b. transporting the materials to the project location, and

c. installing the materials at the project location.

9. No development costs for a project may be included in an appraisal or reappraisal where they have been paid for by another party, including the provincial or federal government.

10. Where a road that is administered by the Ministry of Transportation and Infrastructure requires reconstruction or an upgrade in order to be used for the hauling of Crown timber, the cost of the project may not be used in an appraisal or reappraisal unless:

a. the use of the cost of that project has received prior approval from the director of Timber Pricing Branch, and

b. it is based on competitive bids from persons operating at arm’s length from the licensee that undertakes the project.

11. Where the cost of an authorized project is shared by two or more licensees, a licensee’s share of the total development cost estimate may be apportioned in accordance with section 4.3.1.4.

12. Where a reconstruction and replacement project was not planned at the time of the appraisal of the first cutting authority area and was not used in either the appraisal or reappraisal of that cutting authority area, the cost estimate of that project may be used in the appraisal of the tributary cutting authority area from which harvested timber is the first to be transported over that project.

13. The development cost estimate for a reconstruction or replacement project may not exceed the development cost estimate that would have been made if the project had been a new construction project at that same location.

14. No cost may be considered in an appraisal or reappraisal if the cost was as a result of the licensee’s negligence, or failure to comply with legislation.


4-6 July 1, 2012

4.3.1 Development Cost Allocation

Where proration is required for section 4.3.1.1 and 4.3.1.2:

Crown Share = Total Estimated Cost *Appraised Timber Volume

Total Timber Volume

Where:

Crown Share ($) = Dollar amount to be allocated to stumpage-bearing timber in the cutting authority being appraised.

Total Estimated Cost ($) = Dollar amount of the total development cost estimate.

Appraised Timber Volume (m3)

= Volume of Crown timber that is tributary to the project and under the control of the licensee or a company legally associated with the licensee, including volume in all areas contributing to the allowable annual cut determination.

Total Timber Volume (m3) = Total volume of Crown and private timber that is tributary to the project and under the control of the licensee or a company legally associated with the licensee.

In all cases volumes are estimated from the latest approved operational or inventory cruise data and maps of the area within the drainage to the height of land.

The Crown share is a dollar amount which is included in the appraisal of a tributary cutting authority, subject to section 4.3.1.4.

Development cost estimate is allocated according to the outline below (see also Appendix II).

4.3.1.1 Development Cost Estimates on Crown Lands

1. Development providing access to appraised timber only:

Total estimated costs are included in the appraisal.

2. Development providing access to non-appraised timber or non-timber resources only:

Cost estimates are not included in the appraisal.


July 1, 2012 4-7

3. Development in appraised timber areas that provide access to both the appraised timber and non-appraised timber or non-timber resources in a tenure held by the licensee or company legally associated with the licensee:

All cost estimates are prorated between appraised timber and non-appraised timber or non-timber resources as determined by the person who determines the stumpage rate. The appraised timber portion is then included in the appraisal.

4.3.1.2 Development Cost Estimates on Private Land

1. When a new or reconstructed road or structure on private land is required for Crown timber extraction, the estimated cost of the road or structure will be included in the appraisal of a tributary cutting authority according to the procedures of section 4.3.1 and the following:

a. If development provides access to appraised timber only, the total estimated costs are included in the appraisal.

b. If development provides access to non-appraised timber only, cost estimates are not included in any appraisal.

c. If development provides access to both non-appraised and appraised timber, all cost estimates are prorated between non-appraised and appraised timber (section 4.3.1) and then the Crown portion is included in the appraisal.

4.3.1.3 Existing Roads and Structures

1. The following are defined as existing roads for the cutting authority being appraised and are not eligible for inclusion in development cost estimates:

a. Constructed roads that have been previously considered in appraisals of Crown timber within another cutting authority.

b. Roads previously constructed and used to haul non-appraised timber (excluding right-of-way).

c. Roads previously constructed all or in part for purposes unrelated to logging the cutting authority area being appraised.

d. Roads previously constructed, repaired or reconstructed on private land before August 1, 1996.

2. Winter roads over muskeg or organic soils that use snow and ice for a driving surface are not considered as existing roads.

3. If the existing road requires reconstruction or replacement after August 1, 1996, the cost estimate is made as described in section 4.3. If the existing road is on private land, road and land use charges may be included in the appraisal as per section 4.4.1.


4-8 July 1, 2012

4. A road on private land that has previously been included in an appraisal because it was required for only short term timber extraction shall continue to be included upon reappraisal.

4.3.1.4 Amortization Agreements

1. Where the development cost estimate for an authorized project in respect of a road or roads accessing more than one tributary cutting authority exceeds $4.00 per cubic metre, the regional manager may enter into a written agreement with the licensee which authorizes the distribution of that portion of the development cost estimate that the person who determines the stumpage rate determines is required in order to access future tributary timber, between or among, as the case may be, two or more tributary cutting authorities that are issued under the licence under which or because of which the authorization for the project was given.

2. An agreement under subsection (1) is subject to the following conditions:

a. For the purposes of this section, “authorized project” means a project that the person who determines the stumpage rate has accepted as consistent with this manual.

b. Previously apportioned costs may not be used to exceed the $4.00 per cubic metre threshold specified in subsection (1) of this section.

c. The agreement must identify any future tributary timber included in the agreement by a unique identifier for each future cutting authority.

d. Costs for in-block development are not eligible for inclusion in the agreement unless the person who determines the stumpage rate is satisfied that they are required to access future tributary timber.

e. The road portion that may be included in the agreement ends at the far boundary of the first cutting authority being appraised.

f. The agreement is entered into only for the purposes of calculating a stumpage rate and confers no obligation on the Crown to compensate the licensee for any unamortized costs.

g. The agreement must be signed by the licensee and the regional manager.

3. The regional manager will not enter into any new extended road amortization agreements for cutting permits issued under a woodlot licence with an effective date after November 30, 2008.


July 1, 2012 4-9

4.3.2 Tabular Cost Estimates

Tabular costs are determined using the procedures and criteria in this section for the total length of road that the submitting professional certifies is required to remove the timber from the cutting authority area.

4.3.2.1 Subgrade Construction

The subgrade construction cost estimate includes:

clearing, stump removal,

grubbing, ditch construction,

stripping, turnout construction (not landings),

debris disposal, material costs, and

installation of culverts with diameters under 950 mm or the equivalent cross-section area or single log abutment culverts up to 3.4 m span.

Right-of-way felling and logging is excluded.

4.3.2.2 Subgrade Construction Variables

For appraisal purposes the following subgrade construction variables are recognized:

1. Section length: (L)

a. Each section should be representative of a single moisture class. Section lengths are recorded to the nearest 0.1 km. Each section should be 1 km or longer, although some individual section lengths less than 1 km but greater than or equal to 0.100 km are acceptable for extreme variations of slope or % rock. The section length includes that portion traversing through landings.

b. All road segments less than 0.100 km, are to be aggregated with other adjacent road segments, making appropriate adjustments to average site conditions using the distance-weighted averages for the site variables for that section.

c. A short spur road less than 0.100 km that does not access a single landing may be aggregated with a similar stand-alone non-adjacent road section.


4-10 July 1, 2012

2. Road Types :

● Snow/Ice Road : - A snow/ice road is a single lane seasonal winter road including turnouts, with a flat road profile that is built with a combination of snow, ice and dirt, on a surface that may or may not have been stumped. The driving surface is built up using multiple layers of snow and ice such that extra stabilizing material costs are not applicable. A flat road profile means the side slope is less than or equal to 15% and there is minimal side cut. Minimal means that cuts into mineral or organic soil must not exceed 0.5 m in depth for distances up to 0.1 km. Seismic lines being used for roads, that have not previously been used as roads, will be considered as new construction and qualify as snow/ice roads provided they fall within the above criteria.

● Long Term (LT) - A long term road is a road with a continuous raised sub-grade and ditch line (the raised sub-grade and ditch line may be interrupted for short section <100 m in length (e.g., when crossing a short section of rock or at the crest of a hill). In flat terrain the ditch line may simply be the depression created when sub-grade material is excavated to create a raised sub-grade.

● Short Term (S) - A short term road is a road with the stumps removed and a bladed running surface. There may be elements of ditching and elevated grade, particularly around wet areas but these features are not continuous.

3. Uphill Side Slope: (SLOPE %)

Uphill side slope % may show a variation of (+/- 15% about the average) within any section length and represents the average of all slopes in the section to a maximum of 50%. To derive an average for uphill side slope %, several representative cross-section measurements are taken along the section length and the sum of one-half of the distance on each side of the measurement is applied as a weight against the measurement at that cross-section. The uphill side slope % is measured at right angles to the road centreline and is recorded to the nearest integer. Where the road is located on a bench, the uphill side slope of the bench is used.


July 1, 2012 4-11

4. Percent Rock: (ROCK %)

Rock includes bedrock and large boulders (each greater than 1.5m in diameter). It may be rippable or may require drilling and blasting. Rock % may show a variation (+/- 15% about the average) within any section length and represents the average of all rock % in the section to a maximum of 50%. To derive an average % rock, representative cross-section measurements are taken along the section length and the % rock calculated. The sum of one-half of the distance on each side of where the measurements were taken is applied as a weight against the % rock calculated at that cross-section. The percent rock is determined as follows:

ROCK % = h

H* 100

2

2

Where:

h = the vertical cut height of all rock measured from the bottom of the ditch.

H = the total vertical cut height of all materials above the bottom of the ditch.

To determine the percent rock for roads not yet constructed, constructed roads on similar land/rock forms are used as a guide. Alternately, where estimates of rock volume from commercial road design programs are available for tabular sections, that information may be used to estimate the rock %.

5. Soil Moisture Regime (SMR):

Those biogeoclimatic zones/subzones with site series identified as “M”, “VM” or “W” in the dark shaded area of the table in Appendix III are considered “Wet” for appraisal purposes. The biogeoclimatic zones/subzones with site series identified as “SD” and “F” in the light shaded area are considered “Moist”.

6. Biogeoclimatic Zone Abbreviations Used in This Chapter

SBS - Sub-Boreal Spruce

ESSF - Engelmann Spruce Subalpine Fir

IDF - Interior Douglas Fir

MS - Montane Spruce


4-12 July 1, 2012

4.3.2.3 Subgrade Cost Estimate

For each road type, except snow/ice roads, the subgrade cost estimate in $/km is determined from the equation for the appropriate road group.

Road Group Equation

1 Refer to subsection 4.3.3(7)(n)

2 7998 + (110 * SLOPE%)

3 3857 + (75 * SLOPE%) + (1911 * LT)

4 2862 + (104 * SLOPE%) + (3346 * LT) + (1193 * SBS)

5 4683 + (59 * SLOPE%) + (2464 * LT) – (892 * ESSF)

6 4683 + (59 * SLOPE%) + (2464 * LT) – (892 * ESSF)

7 4737 + (100 * SLOPE%) + (1929 * LT)

8 3870 + (2188 * LT) + (1100 * SBS) - (1255 * IDF)

9 3846 + (82 * SLOPE%) + (130 * ROCK%) + (7296 * LT) – (1714 * MS)

10 1647 + (234 * SLOPE%) + (7285 * LT)

11 - 18 + (438 * SLOPE%) + (474 * ROCK%) + (14384 * LT)

($5812/km set as minimum. If equation yields less than $5812 then use $5812)

12 3264 + (348 * SLOPE%) + (5154 * LT)

($3283/km set as minimum. If equation yields less than $3283 then use $3283)

Where:

Road groups are defined in Table 4-1.

LT = 1 if a long term road, otherwise = 0

SBS = 1 if road construction is within this biogeoclimatic zone. Otherwise SBS = 0

ESSF = 1 if road construction is within this biogeoclimatic zone. Otherwise ESSF = 0

IDF = 1 if road construction is within this biogeoclimatic zone. Otherwise IDF = 0

MS = 1 if road construction is within this biogeoclimatic zone Otherwise MS = 0

Snow and Ice (Winter) Roads

The subgrade cost estimate for new snow and ice roads is $2870/km.


July 1, 2012 4-13

Table 4-1 Road Groups

Road Group #

Districts Included

Within the Geographic Boundary of a TSA, SB and TFL

1 Kalum Cascadia TSA Blks 9, 10, 11, Pacific TSA Blk 28A, 28B

2 Skeena Stikine

3 Nadina

4 Williams Lake TSA, SBs J, K & L Prince George TSA, SBs G & H, TFLs 30, 53 Quesnel TSA, SBs E, F, G, H & I, TFL52 100 Mile House TSA, SBs, G & H Cascadia TSA Blks 5, 6, 7

5 Vanderhoof Prince George TSA, SBs C, E, F & I, TFL 51, TFL 42, Cascadia TSA Blk 8

6 Mackenzie TSA, SBs G through P, Prince George TSA SB’s A & B

7 Peace Fort Nelson

Mackenzie TSA, SBs A through F

8 Chilcotin Williams Lake TSA, SBs E, F, G, H, and I Quesnel TSA, SBs A, B, C & D 100 Mile House TSA, SBs A, B, C, D, E, F

9 Kamloops Cascades

TFL 15, 49, 59, Okanagan TSA, SBs 1, 2, 3, 4, 5

10 Rocky Mountain Boundary TSA, TFL 8

11 Columbia Kootenay Lake

Arrow TSA, TFL 23, 3, 33 Okanagan TSA SBs 8, 9 Cascadia TSA Blks 1, 2, 3, 4

12 Headwaters Williams Lake TSA, SBs M & N Okanagan TSA, SBs 6, 7

Woodlot and Timber Licence cutting authorities are assigned to the road group for the area in which they are geographically located.

1 Portion of TFL 52 that was within the former TFL5.


4-14 July 1, 2012

4.3.2.4 Drainage Structures

An appraisal may include a cost estimate for large drainage structures only where their requirement is substantiated by field data. All pipe culverts under 950 mm in diameter or the equivalent cross-section area and all single log abutment culverts up to 3.4 m span length are included in the subgrade cost estimates (see section 4.3.2.1).

For a detailed description of large drainage structures see page 37 of the Forest Road Engineering Guidebook (June 2002) for a detailed description.

For a detailed description of smaller drainage structures see pages 104 (Pipe Culverts) and 106 (Log Culverts) of the Forest Road Engineering Guidebook (June 2002) for detailed description.

An electronic version of the above guidebook can be accessed at:

http://www.for.gov.bc.ca/tasb/legsregs/fpc/FPCGUIDE/Guidetoc.htm

1. Culverts

The cost estimates for the supply and installation of culverts from 0.3 m to 1.8 m in diameter are determined from Table 4-2. Culverts smaller than 0.95 m are included in the subgrade cost estimates in section 4.3.2.3.

Costs for culverts smaller than 0.95 m are included in Table 4-2 for use where a detailed engineering cost estimate in section 4.3.3 requires the use of culverts smaller than 0.95 m. Detailed engineering cost estimates are required for culverts larger than 1.8 m, no interpolation of values is permitted. Total installation cost for culverts includes all costs of transporting the culvert to the jobsite and all costs of installation of the culvert to the final subgrade stage.


July 1, 2012 4-15

Table 4-2 Culvert Appraisal Cost Estimates

INSTALLED CULVERT COST ESTIMATE ($)

Culvert length

(m)

Equivalent Round Diameter

0.3 0.4 0.45 0.5 0.6 0.7 0.8 0.9 0.95 1 1.2 1.4 1.6 1.8

X-Sectional Area (m2)

0.07 0.13 0.16 0.2 0.28 0.38 0.5 0.64 0.71 0.79 1.13 1.54 2.01 2.54

9 533 655 728 811 1002 1228 1488 1783 1944 2113 2877 3780 4822 6003

10 550 685 767 859 1071 1322 1612 1940 2118 2306 3155 4158 5316 6628

11 568 716 807 907 1141 1417 1735 2096 2292 2499 3433 4537 5810 7253

12 585 747 846 956 1210 1511 1859 2252 2466 2692 3711 4915 6304 7878

13 603 778 885 1004 1280 1606 1982 2408 2640 2885 3989 5293 6798 8504

14 620 809 924 1052 1349 1700 2106 2565 2815 3078 4267 5671 7292 9129

15 637 840 963 1100 1419 1795 2229 2721 2989 3271 4544 6049 7786 9754

16 655 871 1002 1149 1488 1889 2353 2877 3163 3464 4822 6428 8280 10379

17 672 902 1041 1197 1558 1984 2476 3034 3337 3657 5100 6806 8774 11004

18 689 932 1080 1245 1627 2079 2599 3190 3511 3850 5378 7184 9268 11629

19 707 963 1119 1293 1696 2173 2723 3346 3685 4043 5656 7562 9762 12254

20 724 994 1158 1341 1766 2268 2846 3502 3859 4236 5934 7940 10256 12880

21 741 1025 1197 1390 1835 2362 2970 3659 4034 4429 6211 8318 10749 13505

22 759 1056 1236 1438 1905 2457 3093 3815 4208 4622 6489 8697 11243 14130

23 776 1087 1275 1486 1974 2551 3217 3971 4382 4814 6767 9075 11737 14755

24 794 1118 1314 1534 2044 2646 3340 4128 4556 5007 7045 9453 12231 15380

25 811 1149 1354 1583 2113 2740 3464 4284 4730 5200 7323 9831 12725 16005

26 828 1179 1393 1631 2183 2835 3587 4440 4904 5393 7601 10209 13219 16630

27 846 1210 1432 1679 2252 2929 3711 4596 5078 5586 7878 10587 13713 17256

28 863 1241 1471 1727 2322 3024 3834 4753 5252 5779 8156 10966 14207 17881

29 880 1272 1510 1776 2391 3119 3958 4909 5427 5972 8434 11344 14701 18506

30 898 1303 1549 1824 2461 3213 4081 5065 5601 6165 8712 11722 15195 19131


4-16 July 1, 2012

2. Bridges

Cost estimates for both log bridges and non-log bridges, where required and not included in subgrade cost estimates, are made as detailed engineering cost estimates (section 4.3.3).

4.3.2.5 Additional Stabilizing Material

Additional stabilizing material is the placement of gravel or broken rock on the road subgrade to provide stable support and a running surface for logging equipment using the road during the harvesting of tributary timber (see section 4.3.3(7)(l) for cost estimates pertaining to the use of special materials). Where stabilizing material developed during the subgrade or ditch construction is insufficient, a cost estimate for additional stabilizing material to be trucked in from selected borrow pits may be included in the appraisal.

Unit Cost Estimate

The unit cost estimate ($/km) for the additional stabilizing material includes:

● borrow pit preparation,

● rock drilling, explosives, loading of explosives and blasting,

● loosening and/or pushing materials in borrow pits when required (e.g., compacted or cemented gravel, oversize material, etc.),

● loading gravel trucks,

● truck hauling, and

● spreading and compacting the material.

The cost estimates assume borrow pits are located adjacent to the road side and are not part of the subgrade excavation. If a new road needs to be constructed to access the borrow pit, then an access road cost estimate is required in addition to the in-place unit cost estimates.


July 1, 2012 4-17

For each road, the additional stabilizing material cost estimate ($/km) is determined from the equation for the appropriate road group.

Road Groups Equation

1 Refer to section 4.3.3(7)(n)

2 7771

3 9609

4 5381 + (486 * D)

5 10282

6 10282

7 10282

8 6863

9 6863

10 9533

11 9533

12 9533

Where:

Road groups are defined in Table 4-1.

D = Distance in kilometres from source of ballast to the centre of the section that requires ballast (rounded to the nearest 0.1 km)

No cost estimate for additional stabilizing material is allowed for any snow and ice roads.

4.3.2.6 Cattle Guards, Fencing and Pipeline Crossings

1. Where the installation of cattle guards, remedial fences or wing fences are required to mitigate the impacts to range barriers resulting from harvesting on the cutting authority area, the following cost estimates apply:

a. Cattle Guards $5546 each

b. Remedial Fences and Wing Fences

$830 per 100 m (post and wire, post and rail and/or log snake fence construction only)


4-18 July 1, 2012

2. For pipeline crossings, the following cost estimates apply:

$4271 per single pipe crossing

$2570 per pipe in multiple pipe crossings (where 2 or more pipes are crossed within the same right-of-way)

3. The cost estimates for subsections (1) and (2) include materials, transportation and

installation.

4.3.3 Detailed Engineering Cost Estimates (ECE)

1. Where the tabular cost estimating procedures of this manual cannot be used due to their physical limitations, the cost of a project shall be estimated by preparing a detailed engineering cost estimate. The regional manager may approve standardized procedures to generate cost estimates for use in projects as listed below.

2. Where specific development projects involve detailed engineering cost estimates, the district manager shall be advised of project details no later than 60 days before the start of work on the project.

3. For appraisal purposes, the are made on the basis of the site-specific data using the definitions found in section 4.3.2.2 for common subgrade construction variables, the culvert costs included in Table 4-2, and the equipment and labour rates specified in Appendix I from the manual in effect at the time the costs were incurred. Due consideration is given to arm's length competitive bids for any specific project. The Crown is not liable for any difference between the appraisal estimate and the licensee’s actual costs.

4. If the ECE is re-estimated once after construction as provided in section 2.2(3) (using more accurate on site information) the new detailed engineering cost estimate replaces the original (used in the initial appraisal). Detailed engineering cost estimates originally estimated using ministry approved competitive bids may be re-estimated once after construction provided the original call to tender included a methodology for adjusting the bid price based on more accurate site information and re-estimation of those costs is performed in accordance with that methodology. ECE’s are not re-estimated due to labour and/or equipment rates being updated periodically in Appendix I.

5. Where the actual on–site information is known prior to the appraisal that information shall be used in the ECE as determined by the person who determines the stumpage rate.

6. Where road sections estimated as a detailed engineered cost estimate are contiguous with tabular cost estimates, costs for mobilization and demobilization will only be


July 1, 2012 4-19

allowed for special equipment not required for the construction of the tabular roads. The costs for replacement or addition of stabilizing material must be determined using section 4.3.2.5 unless the material is placed in conjunction with geo fabric, geo grids, corduroy or where the stabilizing material requires processing such as screening or crushing.

7. The following specific situations are considered for detailed engineering cost estimates:

a. New construction of long term, primary access road sections, that will have 300 000 cubic metres of harvested Crown timber hauled over them annually for at least ten years.

b. Road construction on uphill side slopes greater than 50%.

c. When rock percent as calculated in section 4.3.2.2(4) is greater than 50%, or terrain class 4 and 5.

d. End haul construction (of roads and landings) requiring removal by truck of excavated material to a separate area to avoid side casting on steep and/or sensitive sites.

e. Overland construction to provide a roadbed by trucking in material for extensive filling; see page 81 of Forest Road Engineering Guidebook for a more detailed description.

f. Log bridges and non-log bridges (including ice bridges) that are not included in the subgrade cost estimates. Eligible costs are described in section 4.3.3(8).

g. Structural maintenance of bridges, substructure and cribwork.

h. Reconstruction of roads and pertinent structures. Cost estimates for reconstruction are not to exceed the tabular cost for new construction under similar conditions.

i. Upgrade of roads and pertinent structures resulting in a change in the standard of the road and structure or where the licensee was not obligated to carry out road maintenance prior to the appraisal. Where road maintenance obligations exist, road upgrade is limited to widening the running surface, vertical and horizontal realignment, and additional culverts.

j. i. Replacement or addition of stabilizing material to the existing road running surface or where stabilizing material was not previously used, for uninterrupted road lengths of 0.3 km, or greater.

ii. Road lengths less than 0.3 km are included in the road management cost estimate.


4-20 July 1, 2012

k. Culverts greater than 1.8 m in diameter, or culverts greater than 30 m in length regardless of diameter. The cost estimate includes all costs of transporting the culvert to the jobsite and all costs of installation of the culvert to the final subgrade stage.

l. Placement of additional stabilizing material where geo fabric, corduroy, crushed and/or screened rock/gravel are used.

m. Retaining walls, railway crossings and other structures (such as multiple culverts, baffled culverts, arched culverts and other structures determined by the timber pricing co-ordinator).

n. Subgrade and ballast cost estimate in road group 1, Kalum District. The subgrade and ballast cost estimate will be determined using the detailed engineering cost methodology specified by the Northern Interior Forest Region.

o. The costs of designing and constructing a forwarding road, where the timber pricing co-ordinator is satisfied that it will produce the highest stumpage rate. A forwarding road is not a trail but a road built to a designed standard which includes stripping, grubbing, stumping and primary excavation to establish subgrade that is used for transporting crews and equipment and forwarding timber but not for hauling logs.

8. The data which may be required for excavation and fill estimates are:

a. Plans, profiles, cross-sections showing the ground and design grade lines.

b. Volume summary sheets showing excavation quantities by various soil types, for subgrade and stabilization.

c. Type of construction equipment and quantity of material to be used, or Ministry approved competitive bid costing.

d. Location of borrow and waste areas to calculate material haul distances.

9. The data required for bridges, culverts and for other structures are:

a. Where the bridge span is 15.4 m or less and the crib height is 5.4 m or less and a permanent structure is proposed, an economic life cycle comparison between a log structure and the permanent proposal is required.

b. Where the bridge span is greater than 15.4 m, and/or the crib height is greater than 5.4 m or more and for pipe culverts greater than 1.8 m in diameter or 30 m in length: plans, specifications and design for the proposed structure; detailed estimate of costs of materials; equipment and labour or ministry approved competitive bid pricing; amount of timber accessed by the structure and the number of years of use for harvesting all timber are required.


July 1, 2012 4-21

10. Costs that may be included in the detailed engineered cost estimate are:

a. Freight (for materials).

b. Provincial sales tax if applicable (for materials purchased prior to July 1, 2010).

c. Supervision of construction of complex structures by a professional engineer.

d. Bridge Costs

i. In addition to other costs described in this section, bridge costs may include:

• Crib back fills to a maximum distance of 15 m on either end.

• Site preparation.

• Protection features such as rip rap.

• Material and equipment supply and delivery (subject to paragraphs (ii) and (iii) in this subsection).

• Bridge certification by a professional engineer either employed by the licensee or contracted. A maximum of three field visits are permitted unless otherwise approved by the regional timber pricing co-ordinator.

ii. Where bridge materials are re-used by the original purchaser at a different site, the bridge cost estimate may include the cost of dismantling the materials at the site where they were previously used, and transportation to and installation at the different site, but may not include the initial materials and delivery costs.

iii. Where used bridge materials are purchased by the licensee from a legally non-associated party, only the cost of purchasing and transporting those materials approved by the person determining the stumpage rate may be included in the bridge cost estimate in addition to the costs listed above.

e. Site plans, designs and layouts.

f. Where equipment is not, or will not be already on site for adjoining tabular road, bridge or culvert construction, then the costs of mob and demob may be included in the engineered cost estimate.

11. GST/HST and supervision costs other than as stated above, are not to be included in the engineered estimate.

12. Where different timber volumes are used for separate cost estimates, the unit costs are rounded to the nearest cent before totalling.


4-22 July 1, 2012

4.3.3.1 Trending of Detailed Engineering Costs

1. All detailed engineering costs must be adjusted to match the cost base of the manual in effect at the time of the appraisal or reappraisal (refer to Table 4-3). This includes development costs in apportionment agreements, ministry approved competitive bid tenders, and ECE’s prepared using Appendix I.

2. ECE Cost Year means:

a. For ECEs (or portion(s) thereof) which are calculated using this manual, the ECE Cost Year is 2010.

b. For ECEs (or portions(s) thereof) which are calculated using tenders, materials costs, design and survey costs, etc. the year the costs are based on or incurred is the ECE Cost Year.

c. Where all components of an ECE have a common ECE Cost Year, the trend factor can be directly determined from Table 4-3.

d. For new or re-estimated (section 2.2(3)) ECEs where components of an ECE have different ECE Cost Years, it is necessary to trend all components to the Cost Base Year of the manual in effect at the time (based on the effective date of the cutting authority). The Cost Base Year then becomes the ECE Cost Year for future trending.


July 1, 2012 4-23

Table 4-3 Trend Factors for ECE Costs

ECE Cost Year

Multiply by this Trend Factor to Match the 2010 Cost Base

1995 0.925

1996 0.872

1997 0.811

1998 0.856

1999 0.899

2000 0.879

2001 0.894

2002 0.904

2003 0.978

2004 0.978

2005 1.0

2006 1.0

2007 1.0

2008 1.0

2009 1.0

2010 1.0

2011 1.0

2012 1.0


4-24 July 1, 2012

4.4 Road Management

Where the licensee is obliged to carry out road management, activities, the road management cost estimate includes but is not limited to, costs for the following:

grading seasonal erosion control

snowplowing and refreezing roadside treatments

sanding sign maintenance

spot gravelling (< 0.3 km distance) dust control

culvert repairs and thawing brushing

culvert removal minor flood and storm damage repair

culvert replacement slough removal

non-structural maintenance of bridges

water bar construction (seasonal)

bridge re-decking/wearing surface replacement

road ripping

ditching cross ditch construction

cattle guard cleanout grass seeding

road use charges paid to other licensees

all deactivation

all access management

The cost estimate for all road management carried out on logging operations depends on the geographic location of the cutting authority area (refer to Table 4-4).

Cutting authorities issued under forms of tenure not located administratively within a tree farm licence area or timber supply area will be assigned the road management cost estimate for the TFL or TSA/supply block in which the cutting authority is geographically located.


July 1, 2012 4-25

Table 4-4 Road Management Cost Estimates

Region TFL # TSA TSA # Supply Block $/m3 Northern Interior Bulkley 3 All 2.53

Cascadia 45 9, 10 & 11 2.53 Cassiar 4 All 2.53 Cranberry 42 All 2.53 Dawson Creek 41 All 0.32 Fort Nelson 8 All 0.32 Fort St. John 40 All 0.32 Kalum 10 All 2.53 Kispiox 12 All 2.53 Lakes 14 All 1.41 Mackenzie 16 All 1.22 Morice 20 All 1.41 Nass 43 All 2.53

Pacific 44 28-A, 28-B 2.53

Prince George 24 A, B, C 1.22 Prince George 24 D 1.38 Prince George 24 E, F, I 1.41 Prince George 24 G, H 1.13

1 2.5330 1.1341 2.53 42 1.2248 0.3253 1.13

Southern Interior 100 Mile House 23 A, B, C, D 0.79 100 Mile House 23 E, F, G. H 0.94

Arrow 1 All 1.85 Boundary 2 C, D, G 1.85 Boundary 2 E, F 2.01 Cascadia 5, 6, 7 & 8 1.13 Cascadia 1, 2, 3 & 4 1.85 Cranbrook 5 All 1.54 Golden 7 All 2.95 Invermere 9 All 1.54 Kamloops 11 1 1.82 Kamloops 11 2, 3, 4 0.91

Kootenay Lake 13 All 2.23


4-26 July 1, 2012

Region TFL # TSA TSA # Supply Block $/m3 Southern Interior Lillooet 15 All 2.53 Merritt 18 All 1.07 Okanagan 22 1, 2, 3 2.01 Okanagan 22 4, 5, 6, 7 2.01 Okanagan 22 8, 9 2.95 Quesnel 26 A, B, C, D 0.49 Quesnel 26 E, F, G, H, I 1.13 Revelstoke 27 All 2.95 Robson Valley 17 All 1.82 Williams Lake 29 A, B, C, D, E, I 0.79 Williams Lake 29 F, G, H, J 0.79 Williams Lake 29 K, L, M, N 0.94 3 1.85 51 1.41 8 2.01 14 1.54 15 2.01 18 1.82 23 1.85 33 2.95 35 0.91 49 2.01 52 1.13 55 2.95 56 2.95 59 2.01

1 That portion of TFL 52 that was within the former TFL5.


July 1, 2012 4-27

4.4.1 Road and Land Use Charges

Prior to a road or land use charge being included in the TOA, the licensee must:

a. submit a "Request for Approval of a Road Use Charge" form with the appraisal data submission; and

b. receive written approval of the road or land use charge from the regional manager.

1. Charges as a Share of Road Management

a. No recognition is made of such charges. The road management cost estimate in section 4.4 includes all relevant costs whether incurred directly by the licensee or by payment to another party for services performed.

2. Charges Other Than for Road Management

There are three main categories of road status:

a. Forest Service Roads

No road use charges will be included in the TOA for a road that is declared, determined, built, maintained or modified by the provincial government.

b. Permitted Roads

No road use charges will be included in the TOA for roads built on Crown land, authorized by road permit or other cutting authority documents. This category also includes foreshore leases, camp areas and dryland sorts.

c. Other Roads

Road use charges for roads on Indian Reserves or on private land owned by an arm's length third party and not subject to a lease held by the licensee, their affiliate or an agent of either, may be included in the TOA provided there is no lower cost route capable of development through Crown land.

The charges recognized must be reasonable, must not exceed compensation that might be determined under forest legislation and must be proven through the presentation of auditable documents.

3. Other Land Use Charges

Only non-governmental land use charges may be included in the TOA.


4-28 July 1, 2012

4.4.2 Final Road Management (FRM)

The Final Road Management (FRM) cost estimate is determined as follows:

1. For cruise based cutting authorities:

FRM ($/m3) = RM ($/m3) + RU ($/m3)

2. For scale based cutting authorities:

RM ($/m3) = RM $/m3 * TNCV m3 D m3

TNCV m3

RU ($/m3) = RU $/m3 * TNCV m3 D m3

TNCV m3

FRM ($/m3) = RM ($/m3) + RU ($/m3)

Where: RM = Road Management cost estimate from table 4-4 RU = Road and land use charges applicable under section 4.4.1 TNCV = Total Net Coniferous Volume from the cruise D = Total net deciduous volume from the cruise


July 1, 2012 4-29

4.5 Basic Silviculture Cost Estimate

1. The basic silviculture cost estimate includes the cost of all activities that are required to achieve a licensee’s free-growing stand obligations (except root disease control) on the cutting authority area.

a. A basic silviculture cost estimate may not be included in the TOA unless:

i. the licensee is obligated to establish a free growing stand, and,

ii. the activity is not funded by another agency.

2. The area of land where an activity is to be applied that may be considered in the basic silviculture cost estimate is the gross silviculture area (GSA) for which the licensee has an obligation to establish a free-growing stand. The GSA includes the net merchantable area (NMA) from the cruise.

3. Table 4-5 lists the cost estimates ($/ha) for Biogeoclimatic Ecosystem Classification (BEC) zone, subzone, and variant combinations across the interior. Where the subzone/variant combination is not listed in the table, the BEC undifferentiated subzone “un” cost estimate is used.

4. Where a cutting authority area includes more than one BEC zone/subzone/variant combination, a prorated BEC zone/subzone/variant cost estimate will be determined by prorating the cost estimates from Table 4-5 for the primary and secondary BEC combination identified in the appraisal data submission based on their respective % by net merchantable area identified in the appraisal data submission.

5. The basic silviculture cost estimate is calculated as follows:

Basic Silviculture ($/m3) = [NMA * Cost * (CAPCUT%/100) * 1.25] + [(GSA – NMA) * Cost] (TNCV or NMV)1 1 For scale based CAs, use TNCV. For cruise based CAs use NMV.

Where:

NMA = Net merchantable area (ha) from the cruise appraisal summary report. This area must be the same area directly attributable to the appraised net merchantable volume for the cutting authority.

Cost = Prorated BECzone/subzone/variant cost ($/ha) from Table 4-5.

TNCV = Total Net Coniferous Volume (m3).


4-30 July 1, 2012

GSA = Gross silviculture area (ha) within the cutting authority area for which the licensee has free-growing obligations and has not yet received a basic silviculture cost estimate in any appraisal. For the purpose of this section the GSA cannot be less than the NMA and includes any pre-harvested areas outside the NMA of a fully appraised cutting permit that the licensee is responsible for silviculture.

NMV = Net merchantable volume (m3) for the cutting authority area from the cruise appraisal summary report.

PCUT = Partial cutting includes all forms of harvesting, other than clear cutting.

Clear cutting is defined as those areas with block opening sizes equal to or greater than 1 hectare and where the volume removal is equal to or greater than 90% based on the net volume measured to the Interior Standard Timber Merchantability Specifications (section 1.5).

Partial cut areas that have less than 90% volume removal are not to be averaged with those areas that are equal to or greater than 90%. Clear cut areas are to be stratified out before calculating an overall weighted partial cut percent for the cutting authority.

Where a partial cut is comprised of openings of less than 1 hectare in size, the PCUT percent is based on the cumulative volume of these openings divided by the volume of the block area surrounding them.

100*sin

requiredisCuttingPartialwhereareatheonvolumecruisenetTotal

systemcutpartialaguremovedbetorequiredvolumecruiseNetPCUT

(except if partial cut percent > = 90%, then PCUT = 0)

CAPCUT = Cutting Authority (CA) partial cut %. If CAPCUT%>80% CAPCUT% = 80, otherwise:

CAPCUT% = (CA NMV/CA Gross NMV) * 100

CA Gross NMV(m3) = vGS(C) + (vGS(P) / GS(PCUT/100)) + vOC(C) + (vOC(P) / OC(PCUT/100)) + vSK(C) + vHorse(C) + vHeli(C) + (vHeli(P) / Heli(PCUT/100))


July 1, 2012 4-31

Where:

PCUT = Logging method PCUT (%)

CAPCUT = Cutting Authority (CA) partial cut percent V = Net merchantable volume (m3) required to be logged by

each system

Heli (C) = helicopter logging (clear cut)

Heli (P) = helicopter logging (partial cut)

Horse(C) = horse logging (clear cut)

GS (C) = ground skidding (clear cut)

GS (P) = ground skidding (partial cut)

OC(C) = overhead cable logging (clear cut)

OC(P) = overhead cable logging (partial cut)

SK(C) = skyline logging (clear cut)

4.5.1 Root Disease Control

1. Costs for root disease control may only be included in the calculation of the TOA when the treatment is required in a Site Plan, is indicated on the appraisal map, or meets the requirements in this manual.

2. The cost estimates are determined on the basis of information at hand using the procedures approved by the region or Timber Pricing Branch.

4.5.2 Total Silviculture Cost Estimate

Total Silviculture ($/m3) = Basic Silviculture ($/m3) + Root Disease Control ($) TNCV or NMV (m3)1 1.

For scale based CAs, use TNCV. For cruise based CAs, use NMV.


4-32 July 1, 2012

Table 4-5 BEC Silviculture Cost Estimates*

BEC Zone Subzone Variant $/ha BEC Zone Subzone Variant $/ha

BWBS dk 1 1386 ESSF mcp 1232

BWBS dk 2 1386 ESSF mk 1232

BWBS mw 1 1148 ESSF mkp 1232

BWBS mw 2 1866 ESSF mm 1 1232

BWBS un 1386 ESSF mm 2 1232

BWBS vk 1386 ESSF mmp 1 1232

BWBS wk 1 1018 ESSF mmp 2 1232

BWBS wk 2 1172 ESSF mv 1 733

BWBS wk 3 1172 ESSF mv 2 1123

CWH un 595 ESSF mv 3 941

CWH vh 1 595 ESSF mv 4 1533

CWH vh 2 595 ESSF mvp 1 1232

CWH vm 595 ESSF mvp 2 1232

CWH vm 1 595 ESSF mvp 3 1232

CWH vm 2 595 ESSF mvp 4 1232

CWH vm 3 595 ESSF mw 991

CWH wh 1 595 ESSF mwp 1232

CWH wh 2 595 ESSF un 1232

CWH wm 595 ESSF vc 3343

CWH ws 1 595 ESSF vc 2 3343

CWH ws 2 595 ESSF vcp 1232

CWH xm 1 595 ESSF vv 1232

CWH xm 2 595 ESSF vvp 1232

ESSF dc 1 1369 ESSF wc 1 1472

ESSF dc 2 1156 ESSF wc 2 1789

ESSF dcp 1 1232 ESSF wc 3 1492

ESSF dcp 2 1232 ESSF wc 4 1568

ESSF dk 1090 ESSF wcp 2 1232

ESSF dk 1 1090 ESSF wcp 3 1232

ESSF dk 3 1090 ESSF wcp 4 1232

ESSF dk 4 1090 ESSF wk 1 1404

ESSF dkp 1232 ESSF wk 2 1373

ESSF dku 1232 ESSF wm 1425

ESSF dv 1232 ESSF wmp 1232

ESSF dvp 1232 ESSF wv 1232

ESSF mc 1042 ESSF wvp 1232


July 1, 2012 4-33

BEC Zone Subzone Variant $/ha BEC Subzone Variant $/ha

ESSF xc 988 IDF xh 1 2050

ESSF xc 1 988 IDF xh 2 2050

ESSF xcp 1232 IDF xh 4 2050

ESSF xv 1 1232 IDF xm 661

ESSF xv 2 1232 IDF xw 661

ESSF xvp 2 1232 MH un 1515

ICH dk 1667 MS dc 1 825

ICH dm 1667 MS dc 2 825

ICH dw 2119 MS dk 962

ICH dw 1 2119 MS dk 1 962

ICH dw 2 1922 MS dk 4 962

ICH mc 1 1667 MS dm 1 929

ICH mc 2 1667 MS dm 2 1013

ICH mk 1 1318 MS dv 825

ICH mk 2 1328 MS un 825

ICH mk 3 1169 MS xk 832

ICH mm 1667 MS xk 2 758

ICH mw 1 1725 MS xv 337

ICH mw 2 1683 PP dh 1 25

ICH mw 3 1741 PP dh 2 25

ICH un 1667 PP un 25

ICH vc 1667 PP wh 1 25

ICH vk 1 2963 PP xh 2 25

ICH vk 2 2812 SBPS dc 944

ICH wc 1667 SBPS mc 507

ICH wk 1 2345 SBPS mk 448

ICH wk 2 1921 SBPS un 507

ICH wk 3 1921 SBPS xc 302

ICH wk 4 1242 SBS dh 887

ICH xw 1667 SBS dh 1 887

IDF dk 605 SBS dh 2 887

IDF dk 1 908 SBS dk 818

IDF dk 2 992 SBS dw 1 842



IDF dm 1 1126 SBS mc 1 908

IDF dm 2 758 SBS mc 2 840

IDF dw 661 SBS mc 3 617

IDF mw 1 1569 SBS mh 887

IDF mw 2 1438 SBS mk 1 879

IDF un 661 SBS mk 2 875

IDF ww 661


4-34 July 1, 2012

BEC Subzone Variant $/ha

SBS mm 1083

SBS mw 1152

SBS un 887

SBS vk 1531

SBS wk 1 1144

SBS wk 2 1169

SBS wk 3 1113

SWB dk 1161

SWB dks 1161

SWB mk 1161

SWB mks 1161

SWB un 1161

SWB vk 1161

SWB vks 1161

* The dollar per hectare ($/ha) cost estimates are net of overhead.


July 1, 2012 4-35

4.6 Low Grade Percent Adjustment

1. The POA low grade percent adjustment by timber species as shown in Tables 4-6 and 4-7 shall be used in the calculation of the tenure obligation adjustment to account for the timber that is priced at the statutory rate.

2. The low grade percent adjustment for each timber species to be used in the appraisal or reappraisal of the cutting authority area shall be the percent adjustment by timber species by the POA to which the cutting authority area is appraised. Where the net merchantable coniferous volume of timber on the cutting authority area is comprised of 35% or greater red and grey Mountain Pine Beetle (MPB) attacked Lodgepole pine, the adjustment from Table 4-7 is used. For cutting authorities with less than 35% red and grey MPB attacked Lodgepole pine, the adjustment is used from Table 4-6.

3. The low grade percent adjustment to be used in the calculation of the tenure obligation adjustment for a cutting authority area being appraised or reappraised is the sum of the products of the net coniferous cruise volume of each timber species in the cutting authority area multiplied by the low grade percent adjustment for that species, divided by the total net coniferous cruise volume on the cutting authority area.

4. The low grade percent adjustment does not apply to cruise based cutting authorities.


4-36 July 1, 2012

Table 4-6: Point of Appraisal (POA) Low Grade Percent Adjustment by Timber Species

POA BA CE FI HE LA LO SP WH YE100 Mile 0.3268 0.1297 0.0644 0.3459 0.1164 0.5126 0.1114 0.4960 0.1166 Adams Lake 0.2828 0.1359 0.0472 0.0879 0.0362 0.3618 0.1123 0.0592 0.1166 Armstrong 0.3260 0.2242 0.0476 0.1719 0.0509 0.3961 0.0736 0.4938 0.5553 Bear Lake 0.2860 0.2130 0.0852 0.5442 0.1164 0.8035 0.1464 0.4960 0.1166 Boston Bar 0.3303 0.1297 0.0410 0.3459 0.1164 0.3030 0.0948 0.9162 0.1166 Burns Lake 0.2252 0.2130 0.0578 0.5442 0.1164 0.6736 0.1800 0.4960 0.1166 Canal Flats 0.1421 0.0638 0.0710 0.2827 0.1724 0.1138 0.0779 0.1477 0.0549 Canoe 0.2648 0.1246 0.0318 0.0949 0.0593 0.4811 0.0519 0.2658 0.1166 Carnaby 0.1773 0.1777 0.0520 0.2693 0.1164 0.4887 0.1011 0.4960 0.1166 Castlegar 0.3593 0.1340 0.0291 0.1325 0.0825 0.3900 0.0685 0.4744 0.1166 Chetwynd 0.2339 0.2130 0.0520 0.3459 0.1164 0.3667 0.1049 0.4960 0.1166 Chasm 0.3268 0.1297 0.0644 0.3459 0.1164 0.5126 0.1114 0.4960 0.1166 Clear Lake 0.2328 0.2130 0.0961 0.5442 0.1164 0.7259 0.1045 0.4960 0.1166 Craigellachie 0.3847 0.2472 0.0173 0.3660 0.1191 0.7609 0.1831 0.3080 0.1166 Cranbrook 0.1589 0.2207 0.0465 0.2663 0.1440 0.0817 0.0543 0.1815 0.0482 Creston 0.1440 0.0965 0.0372 0.0641 0.0951 0.0878 0.0558 0.2898 0.1166 Elko 0.1567 0.0106 0.1246 0.2836 0.2076 0.1147 0.0703 0.1047 0.1049 Engen 0.2255 0.2130 0.0578 0.5442 0.1164 0.8353 0.2202 0.4960 0.1166 Fort Nelson 0.3315 0.2130 0.0520 0.3459 0.1164 0.3398 0.1599 0.4960 0.1166 Fort St. James 0.2577 0.2130 0.1703 0.5442 0.1164 0.5585 0.1598 0.4960 0.1166 Fort St. John 0.1771 0.2130 0.0520 0.3459 0.1164 0.1961 0.0977 0.4960 0.1166 Fraser Lake 0.2255 0.2130 0.0578 0.5442 0.1164 0.8353 0.2202 0.4960 0.1166 Galloway 0.1589 0.2207 0.0465 0.2663 0.1440 0.0817 0.0543 0.1815 0.0482 Grand Forks 0.2734 0.0837 0.0996 0.0800 0.1071 0.2073 0.1242 0.6845 0.1166 Hazelton 0.1773 0.1777 0.0520 0.2693 0.1164 0.4887 0.1011 0.4960 0.1166 Houston 0.2607 0.2130 0.0578 0.5442 0.1164 0.4821 0.1555 0.4960 0.1166 Isle Pierre 0.2328 0.2130 0.0961 0.5442 0.1164 0.7259 0.1045 0.4960 0.1166 Kamloops 0.3456 0.1581 0.0644 0.3924 0.0388 0.4612 0.1676 0.1649 0.1166 Kelowna 0.3315 0.2281 0.0622 0.2072 0.0759 0.2671 0.0936 0.8599 0.1166 Kitwanga 0.1858 0.0527 0.0520 0.3935 0.1164 0.0374 0.0263 0.4960 0.1166 Lavington 0.3183 0.1465 0.0827 0.2475 0.1407 0.4041 0.0739 0.3223 0.5556 Lillooet 0.3303 0.1297 0.0410 0.3459 0.1164 0.3030 0.0948 0.9162 0.1166 Louis Creek 0.3456 0.1581 0.0644 0.3924 0.0388 0.4612 0.1676 0.1649 0.1166 Lumby 0.3549 0.2352 0.0724 0.2739 0.1012 0.4084 0.0999 0.7660 0.5394 Lytton 0.3303 0.1297 0.0410 0.3459 0.1164 0.3030 0.0948 0.9162 0.1166 McBride 0.1995 0.3823 0.0617 0.1590 0.1164 0.3412 0.0804 0.4938 0.1166 Mackenzie 0.2000 0.2130 0.4503 0.5442 0.1164 0.6146 0.1251 0.4960 0.1166 Merritt 0.3725 0.0900 0.1030 0.2771 0.0760 0.3429 0.1184 0.4938 0.1166 Midway 0.2910 0.2055 0.0817 0.1844 0.0932 0.1740 0.0906 0.6057 0.1166 Okanagan Falls 0.3168 0.2207 0.0811 0.2663 0.0307 0.1940 0.0842 0.4938 0.1166 Park Siding 0.3468 0.1408 0.0582 0.1686 0.0826 0.3652 0.0929 0.5630 0.0339 Prince George 0.2328 0.2130 0.0961 0.5442 0.1164 0.7259 0.1045 0.4960 0.1166 Princeton 0.2967 0.2207 0.1026 0.3402 0.0625 0.2808 0.1328 0.4938 0.9424 Quesnel 0.1805 0.2130 0.0343 0.5442 0.1164 0.6817 0.0657 0.4960 0.1166 Radium 0.1398 0.1266 0.0217 0.1302 0.3886 0.1087 0.0613 0.3084 0.0614 Revelstoke 0.3334 0.4086 0.0334 0.4692 0.1557 0.5417 0.1229 0.6812 0.1166 Slocan 0.3001 0.1129 0.0386 0.1253 0.0616 0.5670 0.1149 0.5184 0.1166 Smithers 0.1917 0.2130 0.0578 0.6936 0.1164 0.3068 0.0956 0.4960 0.1166 Squamish 0.3303 0.1297 0.0410 0.3459 0.1164 0.3030 0.0948 0.9162 0.1166 Strathnaver 0.2574 0.2130 0.0240 0.5442 0.1164 0.6316 0.0848 0.4960 0.1166 Taylor 0.1771 0.2130 0.0520 0.3459 0.1164 0.1961 0.0977 0.4960 0.1166 Terrace 0.1773 0.0993 0.0520 0.4261 0.1164 0.1063 0.0936 0.4960 0.1166 Thrums 0.3468 0.1408 0.0582 0.1686 0.0826 0.3652 0.0929 0.5630 0.0339 Upper Fraser 0.2328 0.2130 0.0961 0.5442 0.1164 0.7259 0.1045 0.4960 0.1166 Valemount 0.1995 0.3823 0.0617 0.1590 0.1164 0.3412 0.0804 0.4938 0.1166


July 1, 2012 4-37

POA BA CE FI HE LA LO SP WH YEVanderhoof 0.2255 0.2130 0.0578 0.5442 0.1164 0.8353 0.2202 0.4960 0.1166 Vavenby 0.3053 0.2689 0.0413 0.4215 0.0529 0.4007 0.1085 0.0982 0.1166 Westbank 0.3301 0.2207 0.1253 0.2849 0.1388 0.2790 0.0791 0.7043 0.1166 Williams Lake 0.2353 0.0800 0.0451 0.3459 0.1164 0.5273 0.0839 0.4960 0.1166 Ymir 0.4071 0.0747 0.0542 0.1654 0.1569 0.5864 0.1142 0.6844 0.1166


4-38 July 1, 2012

Table 4-7 Point of Appraisal (POA) Low Grade Percent Adjustment by Timber Species

POA BA CE FI HE LA LO SP WH YE

100 Mile 0.3766 0.1791 0.1062 0.2233 0.5769 0.6858 0.1550 0.3226 0.8364 Adams Lake 0.2740 0.6669 0.0201 0.1025 0.0647 0.4296 0.0630 0.5172 0.8364 Armstrong 0.3908 0.4081 0.0694 0.1025 0.0647 0.3198 0.0885 0.5507 0.8364 Bear Lake 0.3257 0.2123 0.1064 0.2235 0.1941 0.8582 0.1850 0.0043 0.8364 Boston Bar 0.2719 0.1791 0.0900 0.2233 0.5769 0.6669 0.1434 0.3226 0.8364 Burns Lake 0.2644 0.2123 0.0710 0.2235 0.1941 0.6669 0.1670 0.0043 0.8364 Canal Flats 0.2782 0.1884 0.0553 0.1014 0.0503 0.4966 0.0921 0.1825 0.8364 Canoe 0.3908 0.4081 0.0694 0.1025 0.0647 0.3198 0.0885 0.5507 0.8364 Carnaby 0.2876 0.2123 0.0710 0.2235 0.1941 0.6828 0.2106 0.0043 0.8364 Castlegar 0.2782 0.1884 0.0553 0.1014 0.0503 0.4966 0.0921 0.1825 0.8364 Chetwynd 0.2180 0.4030 0.0762 0.1417 0.1679 0.2517 0.0761 0.5183 0.8364 Chasm 0.2719 0.1791 0.0900 0.2233 0.5769 0.6669 0.1434 0.3226 0.8364 Clear Lake 0.3040 0.2123 0.0724 0.2235 0.1941 0.7627 0.1704 0.0043 0.8364 Craigellachie 0.3908 0.4081 0.0694 0.1025 0.0647 0.3198 0.0885 0.5507 0.8364 Cranbrook 0.2782 0.1884 0.0553 0.1014 0.0503 0.4966 0.0921 0.1825 0.8364 Creston 0.2782 0.1884 0.0553 0.1014 0.0503 0.4966 0.0921 0.1825 0.8364 Elko 0.2782 0.1884 0.0553 0.1014 0.0503 0.4966 0.0921 0.1825 0.8364 Engen 0.3275 0.2123 0.0710 0.2235 0.1941 0.7778 0.2003 0.0043 0.8364 Fort Nelson 0.2180 0.4030 0.0762 0.1417 0.1679 0.2517 0.0761 0.5183 0.8364 Fort St. James 0.2986 0.2123 0.0648 0.2235 0.1941 0.6793 0.1669 0.0043 0.8364 Fort St. John 0.2180 0.4030 0.0762 0.1417 0.1679 0.2517 0.0761 0.5183 0.8364 Fraser Lake 0.1684 0.2123 0.0710 0.2235 0.1941 0.8193 0.1666 0.0043 0.8364 Galloway 0.2782 0.1884 0.0553 0.1014 0.0503 0.4966 0.0921 0.1825 0.8364 Grand Forks 0.2782 0.1884 0.0553 0.1014 0.0503 0.4966 0.0921 0.1825 0.8364 Hazelton 0.2876 0.2123 0.0710 0.2235 0.1941 0.6828 0.2106 0.0043 0.8364 Houston 0.2876 0.2123 0.0710 0.2235 0.1941 0.6828 0.2106 0.0043 0.8364 Isle Pierre 0.3534 0.2123 0.0880 0.2235 0.1941 0.8172 0.2109 0.0043 0.8364 Kamloops 0.2079 0.1582 0.0942 0.1025 0.1045 0.6044 0.1446 0.8199 0.8364 Kelowna 0.2589 0.4081 0.0710 0.1025 0.0647 0.3852 0.0738 0.5507 0.8364 Kitwanga 0.2876 0.2123 0.0710 0.2235 0.1941 0.6828 0.2106 0.0043 0.8364 Lavington 0.3908 0.4081 0.0694 0.1025 0.0647 0.3198 0.0885 0.5507 0.8364 Lillooet 0.2719 0.1791 0.0900 0.2233 0.5769 0.6669 0.1434 0.3226 0.8364 Louis Creek 0.2028 0.4081 0.0496 0.1025 0.0647 0.5826 0.0799 0.5507 0.8364 Lumby 0.3908 0.4081 0.0694 0.1025 0.0647 0.3198 0.0885 0.5507 0.8364 Lytton 0.2719 0.1791 0.0900 0.2233 0.5769 0.6669 0.1434 0.3226 0.8364 McBride 0.2782 0.1884 0.0553 0.1014 0.0503 0.4966 0.0921 0.1825 0.8364 Mackenzie 0.2668 0.2123 0.0710 0.2235 0.1941 0.6467 0.1588 0.0043 0.8364 Merritt 0.2173 0.4081 0.0853 0.1025 0.0647 0.3557 0.0883 0.5507 0.8660 Midway 0.2782 0.1884 0.0553 0.1014 0.0503 0.4966 0.0921 0.1825 0.8364 Okanagan Falls 0.2589 0.4081 0.0710 0.1025 0.0647 0.3852 0.0738 0.5507 0.8364 Park Siding 0.2782 0.1884 0.0553 0.1014 0.0503 0.4966 0.0921 0.1825 0.8364 Prince George 0.3515 0.2123 0.0780 0.2235 0.1941 0.8105 0.2052 0.0043 0.8364 Princeton 0.2729 0.4081 0.0529 0.1025 0.0486 0.3661 0.1475 0.5507 0.8364 Quesnel 0.1964 0.2123 0.0705 0.2235 0.1941 0.6129 0.1250 0.0043 0.8364 Radium 0.2782 0.1884 0.0553 0.1014 0.0503 0.4966 0.0921 0.1825 0.8364 Revelstoke 0.2782 0.1884 0.0553 0.1014 0.0503 0.4966 0.0921 0.1825 0.8364 Slocan 0.2782 0.1884 0.0553 0.1014 0.0503 0.4966 0.0921 0.1825 0.8364 Smithers 0.2876 0.2123 0.0710 0.2235 0.1941 0.6828 0.2106 0.0043 0.8364 Squamish 0.2719 0.1791 0.0900 0.2233 0.5769 0.6669 0.1434 0.3226 0.8364 Strathnaver 0.3105 0.2123 0.0363 0.2235 0.1941 0.7423 0.1325 0.0043 0.8364 Taylor 0.2180 0.4030 0.0762 0.1417 0.1679 0.2517 0.0761 0.5183 0.8364 Terrace 0.2876 0.2123 0.0710 0.2235 0.1941 0.6828 0.2106 0.0043 0.8364 Thrums 0.2782 0.1884 0.0553 0.1014 0.0503 0.4966 0.0921 0.1825 0.8364


July 1, 2012 4-39

POA BA CE FI HE LA LO SP WH YE

Upper Fraser 0.3515 0.2123 0.0780 0.2235 0.1941 0.8105 0.2052 0.0043 0.8364 Valemount 0.2782 0.1884 0.0553 0.1014 0.0503 0.4966 0.0921 0.1825 0.8364 Vanderhoof 0.2900 0.2123 0.0154 0.2235 0.1941 0.7683 0.1852 0.0043 0.8364 Vavenby 0.2782 0.1884 0.0553 0.1014 0.0503 0.4966 0.0921 0.1825 0.8364 Westbank 0.2589 0.4081 0.0710 0.1025 0.0647 0.3852 0.0738 0.5507 0.8364 Williams Lake 0.2998 0.1791 0.0967 0.2681 0.7827 0.5856 0.1046 0.3226 0.8364 Ymir 0.2782 0.1884 0.0553 0.1014 0.0503 0.4966 0.0921 0.1825 0.8364


4-40 July 1, 2012

4.7 Market Logger Cost

1. The market logger cost (MLC) is used in the calculation of the tenure obligation adjustment in an appraisal or reappraisal of a cutting authority area.

2. MLC is expressed in $/m3 and is calculated from the MPS data set

1.291

0.08 133.3

Where:

$1.29/m3 is the average market logger development cost for the auction dataset.

LG is the low grade percent adjustment from Tables 4-6 or 4-7 (for cruise based cutting authorities, LG = 0).

$0.08/m3 is the market logger specified operation cost from the auction dataset.

CPI is the monthly BC Consumer Price Index (refer to section 3.3).

133.3 is the average CPI cost base (2009/10).


July 1, 2012 4-41

4.8 Return to Forest Management (RFM)

The return to forest management factor is 1.031.


4-42 July 1, 2012

4.9 Final Tenure Obligation Adjustment

1. The tenure obligation adjustment is used in the determination of the stumpage rate for a cutting authority other than a timber sale licence entered into under section 20 of the Act.

2. The final tenure obligation adjustment (FTOA) is calculated as follows:

MLCRFMLG

TTOAFTOA

*1

133.3

Where:

TTOA = Total Tenure Obligation Adjustment ($/m3)

FFMA = Final Forest Management Administration cost ($/m3)

DC = Total Development cost ($/m3)

FRM = Final Road Management cost ($/m3)

TS = Total Silviculture cost ($/m3)

LG = Low Grade percent adjustment (for cruise based cutting authorities, LG = 0)

RFM = Return to Forest Management

MLC = Market Logger Cost ($/m3)

CPI = Monthly BC Consumer Price Index (see section 3.3)

July 1, 2012 5-1

Stumpage Rate Determination 5


5-2 July 1, 2012

5.1 Stumpage Rate Determination for a Cutting Authority Entered into Under a BCTS Licence

1. Sections 5.1.1 through 5.1.3 are the policies and procedures for determining the upset for a cutting authority that is entered into under a BCTS licence.

2. a. The Market Pricing System for BCTS can only be used in the appraisal of a BCTS licence and a forestry licence to cut entered into under Section 47.6(3) of the Act where data is available to do a full appraisal.

b. Where the data is not available to do a full appraisal of a cutting authority area, the appraisal must use the procedures outlined in chapter 6 of this manual.

3 a. All upsets for section 20 timber sale licences advertised on or after November 1, 2003 and Forestry Licences to Cut entered into under section 47.6(3) of the Forest Act are fixed for the term and all extensions except where:

i. a reappraisal is done under section 2.2.1(1)(e) due to sudden and severe damage, or

ii. a Minister’s directed reappraisal is done under section 2.2.2,

5.1.1 Upset Stumpage Rates (Upset)

1. Except as provided by subsections (2), (3), (4), (5) and (6) of this section, the upset for a timber sale licence shall be no less than the greater of either the indicated upset stumpage rate (IU) calculated according to section 5.1.2, by regional revenue staff, or the variable cost to prepare the timber for sale (VCU).

2. Where applications for a timber sale licence with an upset determined under subsections (1) or (5) of this section have been invited but no applications have been received, the upset for the re-advertised timber sale shall be no less than the VCU.

3. Where the Executive Director, BCTS, does not anticipate that applications for a timber sale licence with an upset determined under subsections (1) or (5) of this section will be received due to market conditions or timber profile, the upset shall be equal to the upset proposed by the Executive Director.

4. a. The upset for decked timber or partially harvested timber that is over three years old and is administered by BCTS, shall be equal to the upset rate requested by the Timber Sales Manager.

Timber Pricing Branch Stumpage Rate Determination

July 1, 2012 5-3

b. The upset for decked timber or partially harvested timber that has been decked or felled for three years or less and is administered by BCTS shall be the upset rate requested by the Timber Sales Manager.

c. If the timber sales manager intends to sell the decked timber under paragraph (a) or (b) above competitively as a lump sum amount then the upset value is the upset rate from the appropriate paragraph (a) or (b) of this subsection multiplied by the volume of the decked or partially harvested timber determined by an authorized licenced scaler using a method approved by the minister.

5. Except as provided in subsections 2 or 3 of this section, the upset for a timber sale licence where the volume of deciduous timber to be harvested on the cutting authority area is equal to or greater than sixty percent of the total net cruise volume, shall be determined in accordance with sections 5.1.2 except that the market price determined under section 3.4 shall use CD = 1.

6. Where the invitation to tender for timber authorized for harvest under a timber sale

requires a bonus offer, and the amount of stumpage payable will be based on a cruise of the timber as authorized under section 106 of the Forest Act, the upset shall be no less than the greater of:

a. the upset stumpage value derived by regional revenue staff using subsection (1) of this section, or

b. the VCU,

7. The VCU is calculated by the Timber Sales Manager.

8. The upset determined under subsections (1), (2), (3), (4)(b), (5) and (6) of this section shall not be less than the VCU unless approved by the Executive Director, BCTS.


5-4 July 1, 2012

5.1.2 IU Calculation

IU = FEWB x (1- DF)

Where: IU = Indicated upset FEWB = Final estimated winning bid from section 3.7 DF = 0.00 if the cutting authority being appraised was entered into under section 47.6(3) of the Act, otherwise DF = 0.30

5.1.3 Total Stumpage

1. The total stumpage is the total of the upset stumpage rate plus the bonus bid or the upset stumpage value plus the bonus offer, if any, that must be paid by the licensee.

2. Where the upset is determined under subsections (1), (2), (3), and (4) of section 5.1.1, the total stumpage applies to Grade Code 1 and 2 coniferous sawlogs.

3. Where the upset is determined under subsection (5) of section 5.1.1, the total stumpage applies to Grade Code 1 and 2 coniferous and deciduous sawlogs.

4. Where the upset is determined under section 5.1.1(6) total stumpage applies to the timber species and volumes specified by the Executive Director, BCTS.

Timber Pricing Branch Stumpage Rate Determination

July 1, 2012 5-5

5.2 Stumpage Rate Determination for a Cutting Authority Other than a Cutting Authority Entered into Under a BCTS Licence, or a Cutting Authority for Which a Stumpage Rate is Determined Under Chapter 6

Sections 5.2.1 through 5.2.5 are the policies and procedures for determining a stumpage rate for a cutting authority other than a cutting authority entered into under a BCTS licence or a cutting authority for which a stumpage rate is determined under chapter 6.

5.2.1 Indicated Rate (IR)

1. The IR is the difference between the final estimated winning bid (FEWB) calculated for the cutting authority under section 3.7 and the tenure obligation adjustment (TOA) calculated under section 4.9.

2. Expressed as an equation:

IR = FEWB - FTOA

5.2.2 Reserve Stumpage

The reserve stumpage for a cutting authority is determined by selecting:

1. The greater of:

a. the indicated rate, or b. the minimum stumpage rate.

2. The greater of:

c. the upset stumpage rate or value, or d. the minimum stumpage rate or equivalent value.

5.2.3 Stumpage Rate

1. Unless otherwise provided in subsection 2 of this section, the total stumpage is the sum of the reserve stumpage plus any administration and silviculture levies which may apply under section 5.2.4.

2. If the cutting authority is awarded on the basis of competition, the total stumpage is:

a. the sum of the reserve stumpage plus the bonus bid, or

b. the sum of the reserve stumpage plus the bonus offer.


5-6 July 1, 2012

5.2.4 Levies

1. A silviculture levy may be added to:

a. the reserve stumpage rate determined under section 5.2.2,

b. the stumpage rate determined under subsections 6.1.3, 6.2(1), 6.2(2) or section 6.5,

c. the reserve stumpage rate indicated in Table 6-6 for all species grades 4 and 6 and deciduous sawlogs.

2. The levy is equal to the district manager’s or timber sales manager’s cost estimate of silviculture costs to be incurred by the Crown.

3. Development/Administration Levy:

a. A development levy may be added to the reserve stumpage rate. The development levy is equal to the appraisal cost estimate of road construction provided by the Crown as approved by the regional manager.

b. An administration levy may be added to the reserve stumpage rate. The administration levy is equal to the district manager's cost estimate of administration provided by the Crown for preparing a Forestry Licence to Cut for salvage timber. An administration cost estimate is made for every cutting authority where the district office has to prepare all details of a Forestry Licence to Cut for salvage. No levy is applicable to professional applications.

4. The amount of any levy may be re-determined at reappraisal only.

July 1, 2012 6-1

Miscellaneous Policies 6


6-2 July 1, 2012

6.1 Coniferous Average Sawlog Stumpage Rates by Forest Zone and Species

1. a. Each of the following forest zones referred to in Tables 6-1, 6-2, 6-4 and 6-5 is made up of the following forest districts:

i. North Central Zone - Fort St. James, Mackenzie, Nadina, Prince George, Quesnel and Vanderhoof Forest Districts.

ii. North East Zone - Fort Nelson and Peace Forest Districts.

iii. North West Zone - Kalum and Skeena Stikine Forest Districts.

iv. South East Zone - Arrow Boundary, Columbia, Headwaters, Kamloops, Kootenay Lake, Okanagan Shuswap and Rocky Mountain Forest Districts.

v. South West Zone - 100 Mile House, Cascades, Central Cariboo and Chilcotin Forest Districts.

b. Where a species of coniferous timber is not listed in Table 6-1, 6-2, 6-4 and 6-5, the rate that shall be used for that species of timber is the rate listed in the column headed as OTHER.

Table 6-1 Coniferous Average Sawlog Stumpage Rates in $/m3 by Forest Zone and Species

FOREST ZONE BALSAM CEDAR FIR HEMLOCK LARCH L. PINE SPRUCE Y. PINE OTHER1

North Central 5.24 - 14.93 - - 4.25 7.00 - 6.11

North East 0.96 - - - - 1.91 2.30 - 2.13

North West 1.53 2.20 - 1.81 - 3.73 2.49 - 2.33

South East 5.75 11.52 8.28 7.51 8.59 6.29 6.06 2.84 7.04

South West 6.49 7.78 9.35 5.13 - 8.68 5.93 - 7.91

1 Average for the Forest Zone

Timber Pricing Branch Miscellaneous Policies

July 1, 2012 6-3

6.1.1 Community Forest Agreements

1. The sawlog stumpage rate for each species of coniferous timber harvested under any cutting authority issued under a Community Forest Agreement is the rate prescribed in Table 6-2 for the forest zone in which the cutting authority area is located.

2. Sections 1.4(1)(d), sections 6.1.2 through 6.5 and section 6.7 through 6.9 of this chapter do not apply to Community Forest Agreement cutting authorities.

3. The stumpage rate determined under this section is redetermined on August 1 of each year in accordance with this section.

6.1.2 Woodlot Licences

1. Except as provided in subsection (2) of this section, the sawlog stumpage rate for each species of coniferous timber harvested under a cutting permit issued for a woodlot licence with an effective date after November 30, 2008 is the rate prescribed in Table 6-2 for the forest zone in which the cutting authority area is located.

2. Where a woodlot licence cutting permit has been issued with an effective date after November 30, 2008 for the purpose of using amounts from an eligible extended road amortization agreement in an appraisal, then the stumpage rate will be determined using the procedures in this manual excluding this section.

3. Except as provided in subsection (4) of this section, the sawlog stumpage rate for coniferous timber harvested under a road permit issued for a woodlot licence is the rate prescribed in Table 6-2 for the forest zone in which the timber mark applies.

4. Where a woodlot has an eligible extended road amortization agreement before December 1, 2008 the sawlog stumpage rate for a road permit with an effective date on or after December 1, 2008 is calculated using the procedures in section 6.3.

5. The sawlog stumpage rate for each species of coniferous timber harvested under a blanket salvage permit issued for a woodlot licence is the rate prescribed in Table 6-2 for the forest zone in which the blanket salvage permit applies.

6. The stumpage rate determined under subsections (1), (3) and (5) of this section is redetermined on August 1, each year in accordance with this section.

7. Except as provided in subsections (2) and (4) of this section, sections 1.4(1)(d), 6.1.1, 6.1.3 through 6.5, 6.7 and 6.8 do not apply to woodlot licences.


6-4 July 1, 2012

Table 6-2 Community Forest Agreements and Woodlot Licences: Coniferous Average Sawlog Stumpage Rates in $/m3


North Central 0.79 - 2.24 - 0.64 1.05 - 0.92

North East 0.25 - - - - 0.29 0.35 - 0.32

North West 0.25 0.33 - 0.27 - 0.56 0.37 - 0.35

South East 0.86 1.73 1.24 1.13 1.29 0.94 0.91 0.43 1.06

South West 0.97 1.17 1.40 0.77 - 1.30 0.89 - 1.19


6.1.3 Incidental Conifer in Deciduous Leading Stands

1. Except as provided in section 5.1.1(5), this section applies to coniferous timber in a cutting authority area where the total volume of all deciduous species to be harvested is greater than 70% of the total estimated net volume to be harvested.

2. a. The stumpage rate for each species of coniferous timber must be determined by using the stumpage rate prescribed in Table 6-1 for the forest zone in which the cutting authority area is located.

b. Where the Crown is responsible for basic silviculture on the cutting authority area, the stumpage rate for each species of coniferous timber shall be the sum of the rate determined under paragraph (a) of this subsection and the silviculture levy determined under section 5.2.4.

3. A stumpage rate determined under subsection 2 shall be redetermined on June 1, of

each year in accordance with this section.


July 1, 2012 6-5

6.2 Cutting Authorities With 5 000 m3 or Less Volume

1. Where the total coniferous volume to be harvested in a cutting authority area is 2 000 m3 or less, and where the agreement under which the cutting authority authorizing harvesting on the cutting authority area has been issued has a coniferous allowable annual cut of not more than 3 000 cubic metres, or no coniferous annual allowable cut:

a. The stumpage rate for each species of coniferous timber in the cutting authority area must be determined using the stumpage rate in Table 6-1 for the forest zone in which the cutting authority area is located, except that,

b. Where the agreement holder is not required to establish a free growing crop of trees on the cutting authority area, the stumpage rate for each species of timber shall be

i. the sum of the rate determined under paragraph (a) of this subsection and the basic silviculture cost for the species in the forest region, or

ii. where the Crown has the responsibility for silviculture, the sum of the rate determined under paragraph (a) of this subsection and the silviculture levy determined under section 5.2.4.

2. Except as provided in subsection 4 of this section or section 6.2.1, where the total coniferous volume to be harvested on a cutting authority area is 5 000 m3 or less, and the cutting authority authorizing harvesting on the cutting authority area is a competitively awarded forestry licence to cut, other than a BCTS licence:

a. Except as provided in paragraph (d) of this subsection, the upset stumpage rate for each species of coniferous timber in the cutting authority area will be 70 % of the stumpage rate for that species in Table 6-1 for the forest zone in which the cutting authority area is located, except that,

b. Where applications for a forestry licence to cut have been invited with upset stumpage rates determined under this subsection and no applications have been received, the upset stumpage rate for each species of coniferous timber shall be the rate requested by the district manager and approved by the regional manager.

c. Where the regional manager does not anticipate that applications for a forestry licence to cut will be received due to market conditions or timber profile, the upset stumpage rate for each species of coniferous timber shall be the rate requested by the district manager and approved by the regional manager.

d. Where the Crown is responsible for basic silviculture on the cutting authority area, the upset stumpage rate for each species of coniferous timber in the cutting authority area will be the sum of the stumpage rate determined under paragraphs (a), (b) or (c) of this subsection and the basic silviculture levy determined under section 5.2.4.


6-6 July 1, 2012

3. Where the cutting authority authorizing harvesting is a competitively awarded licence to cut other than a BCTS licence, and

a. The total net cruise volume is 5000m3 or less, and

b. The cutting authority has been approved as cruise based under section 106 of the Act,

the upset shall be no less than the district’s cost to prepare the timber for sale as calculated by the district manager and the total stumpage shall apply to all species of timber on the cutting authority area.

4. An upset stumpage rate determined under subsection (2) of this section shall not be less than the district’s variable cost per cubic meter to prepare the timber for sale as calculated by the district manager.

5. Except as provided in section 2.2.2, where the upset stumpage rate is determined under this section, the total stumpage is fixed for the term of the cutting authority and all extensions.

6. a. Notwithstanding subsections (1), (2) or (3) of this section, where the total coniferous volume to be harvested on a cutting authority area is 5 000 m3 or less, the stumpage rate may be determined in accordance with chapters 1, 2, 3, 4 and 5.

b. Where the stumpage rate is determined in accordance with this subsection:

i. the cruise data that is used in the appraisal may be from the cruise of a comparable cutting authority as per section 1.5.1.1, and

ii. except as provided in section 2.3 the total stumpage rate is adjustable for the term of the cutting authority and all extensions.

6.2.1 Forestry Licences to Cut for Specific Purposes (No Volume Limit)

1. a. Where the cutting authority is a forestry licence to cut awarded to the highest bidder, other than a BCTS licence and it has been issued:

i. For the purpose of protecting a community from wildfire as prescribed under section 1 of the Forestry Licence to Cut Regulation, or

ii. For the purpose of removing damaged timber from natural stands or plantations where:

aa. at least 70% of all of the merchantable timber volume on the cutting authority area is Pine that has been damaged by mountain pine beetle, and either

bb. at the time of death, the age of the damaged timber was not more than 60 years, or


July 1, 2012 6-7

cc. a field survey indicates that the average stems per hectare on the cutting authority area is greater than 2 000 with a minimum diameter at breast height of 5 centimeters, or

iii. For the purpose of utilizing post harvest material in piles on landings or at roadside after a waste assessment has been made.

Then, the upset stumpage rate shall be the rate approved by the Regional Manager.

b. Where the invitation for applications for a forestry licence to cut awarded to the highest bidder referred to in paragraph (a) of this subsection requires a bonus offer, and the amount of stumpage payable will be based on a cruise instead of a scale of the timber under section 106 of the Act, the upset stumpage rate shall be the rate approved by the Regional Manager, and shall apply to the net merchantable volume on the cutting authority area.

c. Where the forestry licence to cut is issued without competition for the purposes described in paragraph (a)(i) of this section the sawlog stumpage rate for such species of coniferous timber shall be:

i. Except as provided in (ii), the stumpage rate in Table 6-1 for the forest zone in which the cutting authority area is located.

ii. If more than one-third of the total volume of coniferous timber on the cutting authority area is damaged timber as defined in section 6.4(3) then the stumpage rate in Table 6-4 for the forest zone in which the cutting authority area is located.

iii. When the licence to cut is issued to the lowest eligible bidder on a contract issued for the purpose referred to in paragraph (a)(i) of this subsection, the stumpage rate determined from the applicable paragraph (c)(i) or (c)(ii) above.

d. Where the forestry licence to cut is issued without competition meets the requirements set out in paragraph (a)(ii) of this section, the coniferous sawlog stumpage rate shall be $1.20/m3 when the licence to cut is issued to the lowest eligible bidder on a contract issued for the purpose referred to in paragraph (a)(ii).

e. Notwithstanding any paragraph in this subsection when the timber on the cutting authority area will be scaled as chips or hogged tree material the stumpage rate shall be the minimum stumpage rate.

2. An upset stumpage rate determined under this section must be calculated using the Interior Appraisal Manual in effect on the date that the rate is determined and must not be less than the district’s variable cost to prepare the timber for sale as calculated by the district manager.

3. Notwithstanding subsections 1(c) or (d) the stumpage rate for the forestry licence to cut may be determined in accordance with chapters 1, 2, 3, 4 and 5. The cruise data that is used in the appraisal may be from the cruise of a comparable cutting authority as per section 1.5.1.1.


6-8 July 1, 2012

4. Except as provided in section 2.2.2, when the upset stumpage rate or stumpage rate is determined under this section, the total stumpage rate is fixed for the term of the cutting authority and all extensions.


July 1, 2012 6-9

6.3 Road and Blanket Salvage Permits

1. a. In this section the area of a forest district or the area of a timber supply area does not include the area of a park located within that district or timber supply area.

b. In this section the area of a Tree Farm Licence will be included in the area of the district or timber supply area in which it is geographically located.

2. Except as provided in 6.1.2(3) and (5) and subsections (3) and (4) of this section, the stumpage rate for a road permit or a blanket salvage permit shall be the weighted average sawlog stumpage rate:

a. from the table provided to the regions by Timber Pricing Branch for all cutting authorities, authorizing harvesting on cutting authority areas that have been fully appraised, that authorize the harvesting of timber in the same forest district in which the road or blanket salvage permit cutting authority area is located, and that are issued under the licence that entitles the licensee to apply for the road or blanket salvage permit, if there is a minimum positive scaled based billed volume of 500 cubic metres of coniferous sawlogs from which the weighted average sawlog stumpage rate may be determined, or

b. the stumpage rate is the stumpage rate prescribed in Table 6-3 for the smaller of the area of the same forest district or the area of the same timber supply area in which the road permit or blanket salvage permit cutting authority area is located.

3. The bonus bid if applicable will be added to the stumpage rate determined under subsection 2(b).

Table 6-3 Coniferous Average Sawlog Stumpage Rates by Smallest Geographic Unit

TSA is Smallest Geographic Unit District Rate ($/m3) TSA Rate ($/m3)

Arrow Boundary Forest District 7.22 Arrow TSA 8.27 Boundary TSA 6.15

Cascadia TSA Blks 1, 2, 3, 4 8.27 Cascades Forest District 9.58 Merritt TSA 10.32 Lillooet TSA 1.61 Columbia Forest District 3.70 Golden TSA 3.37 Revelstoke TSA 3.95 Headwaters Forest District 7.55 Robson Valley TSA 0.73 Kalum Forest District 0.70 Nass TSA 0.25 Kalum TSA 0.76

Cascadia TSA Blks 9, 10, 11 0.76 Pacific TSA Blks 28A, 28B 0.76

Nadina Forest District 2.29 Lakes TSA 2.88 Morice TSA 2.20 Peace Forest District 2.13 Dawson Creek TSA 1.63 Fort St John TSA 2.62 Rocky Mountain Forest District 4.67 Cranbrook TSA 5.24 Invermere TSA 3.94 Skeena Stikine Forest District 3.58 Bulkley TSA 4.82 Kispiox TSA 4.92


6-10 July 1, 2012

Cassiar TSA 0.25

District is Smallest Unit1 TSA Rate ($/m3) District Rate ($/m3)

Kamloops TSA 8.45 Kamloops Forest District 8.26 Headwaters Forest District 7.55 Williams Lake TSA 6.31 Central Cariboo Forest District 7.21 Chilcotin Forest District 0.31 Prince George TSA 8.16 Fort St. James Forest District 5.83 Prince George Forest District 9.64 Vanderhoof Forest District 6.04

1Smallest geographic unit

District & TSA are the same District TSA $/m3

100 Mile House Forest District 100 Mile House TSA 4.12 Kootenay Lake Forest District Kootenay Lake TSA 6.12 Fort Nelson Forest District Fort Nelson TSA 4.56* Mackenzie Forest District Mackenzie TSA 4.95 Okanagan Shushwap Forest District Okanagan TSA 9.01 Quesnel Forest District Quesnel TSA 6.62

Cascadia TSA Blks 5, 6, 7, 8 6.62

* Regional rate

Regions Regions Rate ($/m3)

RNI 4.56 RSI 7.22

4. If there are no records from which the weighted average sawlog stumpage rate may

be determined under paragraphs (a) or (b) of subsection (2) of this section, then the stumpage rate, for each species of coniferous timber, is the rate in Table 6-1 for the forest zone in which the road or blanket salvage permit cutting authority area is located.

5. a. The total stumpage rate ($/m3) for a road permit granted to the holder of a timber sale licence entered into under section 20 of the Act shall be the same as the total stumpage rate for the timber sale licence which entitled the holder to apply for the road permit.

b. The total stumpage value ($/ha) for a road permit granted to the holder of cruise based timber sale licence entered into under section 20 of the Act shall be the same as the total stumpage value of the timber sale licence which entitled the holder to apply for the road permit.

6. The stumpage rate for a road permit for a licence other than a BCTS licence shall be redetermined on June 1 of each year in accordance with the procedure in this section.


July 1, 2012 6-11

7. The costs of roads authorized for construction under road permits are eligible for inclusion as development cost estimates under section 4.3 in the appraisal of the licensees’ first fully appraised tributary cutting authority. These roads will not be considered as existing roads under section 4.3.1.3(2).

8. Where a woodlot has an eligible extended road amortization agreement before December 1, 2008 the sawlog stumpage rate for a road permit with an effective date on or after December 1, 2008 is calculated using the procedures in this section.

9. The stumpage rate for a blanket salvage cutting permit shall be redetermined on June 1 each year in accordance with the procedures in this section.

10. Except as provided in 6.3(5), all new Road and Blanket Salvage Permits must be scale based for billing.


6-12 July 1, 2012

6.4 Salvage Timber Stumpage Rates

1. This section applies to cutting authorities issued under licences which do not have an allowable annual cut. Salvaged timber is either post harvest material or damaged timber:

2. Post Harvest Material is either:

a. wooden culverts and bridges, or

b. post logging residue.

3. Damaged Timber is timber that:

a. Has been blown down,

b. Has been damaged by fire, disease, snow press, or

c. Will die within one year, as determined by the district manager, as a result of the affects of the mountain pine beetle, or other forest pests.

d. Will be or has been used for trap trees and associated overflow trees.

4. Except as provided in section 6.2.1(1)(c)(ii), the criteria and methodology for the calculation of salvaged timber stumpage rates are:

a. Post harvest material may not be combined in the same cutting authority area with damaged timber.

b. Except where damage to adjacent or contiguous timber occurs after harvesting is completed on the adjacent primary logging cutting permit area and the harvesting equipment has been demobilized from the area, damaged timber salvage cutting authority areas must be scattered, and not be adjacent to or contiguous with an existing cutting authority area.

c. Except as provided in subsection (4)(d) of this section the total area of a clearcut salvage harvesting area shall not exceed 5 hectares.

d. Where salvage of only damaged stems through partial cutting will leave a stand that meets minimum stocking standards, the area harvested may be larger than 5 hectares.

e. Salvage logging stumpage rates may only be determined for a cutting authority where more than one-third of the total volume of coniferous timber to be harvested in the cutting authority area is damaged timber.

f. Post harvest salvage may only occur after primary logging has been satisfactorily completed and residue and waste assessments have been submitted to and accepted by the Ministry.


July 1, 2012 6-13

g. Salvage cannot occur on a road right-of-way which has an active timber mark associated with it.

h. Except as provided in section 2.2.2, a stumpage rate determined under this section is fixed for the term of the cutting authority and all extensions.

5. Where salvaged timber is damaged timber, the sawlog stumpage rate for each species of coniferous timber shall be the rate in Table 6-4 for the Forest Zone in which the cutting authority area is located.

6. Where the salvaged timber is post harvest material, the sawlog stumpage rate for each species of coniferous timber shall be the rate in Table 6-5 for the forest zone in which the cutting authority area is located.

Table 6-4 Coniferous Average Sawlog Stumpage Rates for Salvage of Damaged Timber by Forest Zone and Species in $/m3

FOREST ZONE BALSAM CEDAR FIR HEMLCOK LARCH L. PINE SPRUCE Y. PINE OTHER1

North Central 3.14 - 13.44 - 3.19 6.30 - 3.67

North East 0.58 - - - - 1.43 2.07 - 1.28

North West 0.92 1.98 - 1.09 - 2.80 2.24 - 1.40

South East 3.45 10.37 7.45 4.51 7.73 4.72 5.45 2.13 4.22

South West 3.89 7.00 8.42 3.08 - 6.51 5.34 - 4.75


Table 6-5 Coniferous Average Sawlog Stumpage Rates for Salvage of Post Harvest Material by Forest Zone and Species in $/m3


North Central 1.31 - 7.47 - 2.13 3.50 - 1.53

North East 0.25 - - - - 0.96 1.15 - 0.53

North West 0.38 1.76 - 0.45 - 1.87 1.25 - 0.58

South East 1.44 9.22 4.14 1.88 4.30 3.15 3.03 1.42 1.76

South West 1.62 6.22 4.68 1.28 - 4.34 2.97 - 1.98



6-14 July 1, 2012

6.5 Decked and Partially Harvested Timber

1. When decked timber only is advertised for sale to the highest bidder, the upset stumpage rate for the timber shall be the total of the silviculture levy determined under section 5.2.4 and:

a. The prescribed minimum stumpage rate if the timber has been decked for over three years, or

b. 70% of the stumpage rate from Table 6-4 for the applicable species and forest zone if the timber has been decked for three years or less.

2. When decked timber only is sold directly without the use of the competitive bidding process, the stumpage rate for the timber shall be the total of the silviculture levy determined under section 5.2.4 and:

a. The variable cost to prepare the timber for sale if the timber has been decked for over three years, or

b. The stumpage rate from Table 6-4 for the applicable species and forest zone if the timber has been decked for three years or less.

3. When partially harvested timber only is advertised for sale to the highest bidder the upset stumpage rate for the timber shall be the total of the silviculture levy determined under section 5.2.4 and:

a. The prescribed minimum stumpage rate, if three years or more have passed since the timber was felled, or

b. 70% of the stumpage rate for the applicable species and forest zone from Table 6-5 if less than three years have passed since the timber was felled.

4. When partially harvested timber only is sold directly without the use of the competitive bidding process, the stumpage rate for the timber shall be the total of the silviculture levy determined under section 5.2.4 and:

a. The variable cost to prepare the timber for sale if three years or more have passed since the timber was felled, or

b. The stumpage rate from Table 6-5 for the applicable species and forest zone if less than three years have passed since the timber was felled.

5. a. Where applications for decked timber or partially harvested timber being sold to the highest bidder have been invited with an upset stumpage rate determined under subsections 1(b), 3(b) or 6(a) of this section and no applications have been received, the upset stumpage rate shall be the rate approved by the Regional Manager.


July 1, 2012 6-15

b. Where the regional manager does not anticipate that applications will be received for decked timber or partially harvested timber being sold to the highest bidder due to market conditions or timber profile, the upset stumpage rate determined under subsections 1(b), 3(b) and 6(a) of this section shall be the rate approved by the regional manager.

c. An upset stumpage rate determined under paragraphs (a) or (b) of this subsection shall not be less than the district’s variable cost to prepare the timber for sale.

6. a. Where applications for a forestry licence to cut that applies to both decked timber and partially harvested timber have been invited, the upset stumpage rate shall be the total of the rate determined using the procedures in subsection (1) of this section, as if the timber was all decked timber and the silviculture levy determined under section 5.2.4.

b. Where a forestry licence to cut that applies to both decked timber and partially harvested timber is entered into directly without the use of the competitive bidding process the stumpage rate shall be the total of the rate determined using the procedure in subsection 2 of this section as if the timber was all decked timber and the silviculture levy determined under section 5.2.4.

7. Where the upset stumpage rate or the stumpage rate has been determined using this

section the total stumpage rate shall be fixed for the term of the cutting authority and all extensions.

8. An upset stumpage rate calculated under this section must be calculated using the Interior Appraisal Manual in effect on the date that the rate is determined (appraisal effective date).


6-16 July 1, 2012

6.6 Miscellaneous Stumpage Rates

1. Unless otherwise specified in this manual, the stumpage rates, at the time of scale for timber harvested for the purposes described, in the districts listed, in the forest district specific section of Table 6-6 are as prescribed in that table. This table does not apply to cruise based cutting authorities.

Table 6-6 Miscellaneous Stumpage Rates All Interior Forest Regions

Species Code 1 Product Reserve Stumpage Rate

All Species SB Shake & Shingle Bolts, Blocks and Blanks. $5.30/m3 All Species SK Shakes $6.00/m3 Cedar PR Posts & Rails (Split and Round) $3.00/m3 All other Species PR Posts & Rails (Split and Round) $1.20/m3 All Species MT Mining Timbers $3.00/m3 All Species FW Firewood $0.50/m3 Yew All $0.25/m3 All Species CH Wood chips from post-harvest material where a waste

assessment has been made 2 $0.25/m3

All Species HF Hogged tree material from post-harvest material where a waste assessment has been made 2

$0.25/m3

All Species Grades 4 and 6, except where the upset stumpage rate is determined under section 6.2.1(1)(a) and (b) and 5.1.1(5)

$0.25/m3

Deciduous Species All, except grades 4 and 6 and except where the upset stumpage rate is calculated under section 6.2.1(1)(a) and (b) and 5.1.1(5)

$0.50/m3

All Species SS Stakes & Sticks. $1.20/m3

All Species XM Christmas Tree: under 3m 3-5 m over 5 m

$0.20/each$1.00/each $1.50/each

All Species Logs salvaged below the high water levels of Reservoir Lakes and the Shuswap, Slocan, Kootenay, Mineral, Babine and Ootsa Lakes

$0.25/m3

All Species Marine Beachcomb $0.70/m3

All Coniferous For logs harvested from the following Research Forests: Alex Fraser (UBC), Aleza Lake (UBC and UNBC), College of New Caledonia (CNC), and Fort St. James (UNBC)

$0.25/m3

All Species Firmwood Reject NIL

1 Special Forest Product as identified in section 94(3) of the Act and described in the Scaling Manual. 2 The rate does not apply to the timber mark for the original scale based or cruise based cutting authority. Where the post harvest material is removed under a different tenure from the original cruise based cutting authority, a waste assessment is not required.


July 1, 2012 6-17

District/TSA Specific

Description of Activity Forest District/TSA Reserve Stumpage Rate

New Crown land area disturbed for mining exploration trails, seismic lines1, gas or oil well sites and right-of-way to well sites 2, mine sites3, or, authorizations for investigative purposes issued under the Land Act.

Rocky Mountain Peace Ft. Nelson Mackenzie Cassiar

$1,821/ha $724/ha $836/ha $424/ha $872/ha

1 The corresponding district reserve stumpage rate from the above table is adjusted according to the category of line

clearing as follows:

Category 1 - no adjustment Category 2 - 1/2 of the reserve stumpage rate Category 3 - 1/3 of the reserve stumpage rate

The gross area for each category reported as new line on either; the Oil and Gas Commission's Geophysical Final Plan cover sheet or an As Cleared Plan is multiplied by the reserve stumpage rate as adjusted above (refer to Appendix V for category definitions).

2 For pipe line rights-of-way a stumpage rate must be determined by using the above rates for cutting authorities containing 2 000 m3 or less, of merchantable coniferous volume. For pipe line rights-of-way cutting authorities greater than 2 000 m3 see section 6.7.

3 Cassiar TSA only


6-18 July 1, 2012

6.7 Linear Tenures

1. For this section:

“Linear tenures” means a licence to cut issued for:

● A right-of-way to a mine site, or

● Activities listed in Table 6-6 with an area reserve stumpage rate in a district other than Fort Nelson, Peace, Mackenzie, Rocky Mountain, Cassiar TSA, or

● A pipeline right-of-way where the volume of timber on the cutting authority area is greater than 2 000 cubic metres, or

● A pipeline right-of-way where the volume is 2 000 m3 or less in a district other than Fort Nelson, Peace, Mackenzie, or Rocky Mountain, Cassiar TSA, or

● A hydro transmission line, or

● A highway right-of-way for a road administered by the Ministry of Transportation and Infrastructure, or

● A forestry licence to cut issued under section 47.6(3) of the Act in conjunction with a BCTS road development contract, or

● A fence line or protection of a fence line administered under the Range Act, or

● Roads authorized under the Land Act.

“Licensee” means the licensee who has been issued a linear tenure.

2. The stumpage rate for a linear tenure shall be the stumpage rate prescribed in Table 6-3 for the smaller of the area of the forest district, timber supply area or region in which the entire cutting authority area for the linear tenure is located.

3. The costs of roads constructed on the cutting authority area for a linear tenure are only eligible for inclusion as part of the development cost estimate in the licensee’s first fully appraised tributary cutting authority area if those costs were not used in a full appraisal under subsection (4) of this section.

4. a. Notwithstanding any other subsection in this section the stumpage rate for a linear tenure may be determined through a full appraisal.

b. Where the stumpage rate is determined in accordance with this subsection, the cruise data that is used in the appraisal may be from the cruise of a comparable cutting authority as per section 1.5.1.1.

5. A stumpage rate determined under this section shall be fixed for the term of the linear tenure and all extensions.


July 1, 2012 6-19

6.8 Controlled Recreation Areas (CRAs)

1. The sawlog stumpage rate for coniferous timber harvested under any cutting authority issued for a cutting authority area within a CRA is the stumpage rate approved by the director for each quarter.

2. The stumpage rate determined under subsection (1) is redetermined on the anniversary date of the cutting authority in accordance with this section.

3. Notwithstanding any other subsection in this section, the stumpage rate may be determined through a full appraisal in accordance with chapters 1, 2, 3, 4 and 5.


6-20 July 1, 2012

6.9 Cruise Based Stumpage Calculations

1. Pursuant to section 106 of the Forest Act, and subject to subsection 2 of this section, the amount of stumpage payable on Crown timber will be calculated using information provided by a cruise of the timber before it is cut where the timber is authorized for harvest:

a. Under a cutting authority issued or entered into prior to June 1, 2010 where:

i. the stumpage rate is adjustable,

ii. the net merchantable coniferous volume of timber on the cutting authority area is comprised of 35% or more red and grey Mountain Pine Beetle (MPB) attacked Lodgepole pine, and

iii. timber harvesting has not started on the cutting authority, or,

b. Under a cutting authority issued or entered into on or after June 1, 2010 where:


ii. the licensee applied for a cutting permit and submitted an ADS to the district manager before June 1, 2010, and,

iii. the net merchantable coniferous volume of timber on the cutting authority area is comprised of 35% or more red and grey MPB attacked Lodgepole pine, or,

c. Under a cutting authority issued or entered into on or after June 1, 2010 where:


ii. the licensee submitted an ADS to the district manager on or after June 1, 2010, and

iii. the net merchantable coniferous volume in each cutblock within the cutting authority area is comprised of 35% or more red and grey MPB attacked Lodgepole pine, or,

d. Except as provided in subsection (4) of this section, under a timber sale licence with a fixed stumpage rate, which meets the criteria in paragraph (1)(c) (ii) and (iii) of this section, or a timber sale licence with a fixed stumpage rate where the executive director, BCTS has approved cruise based under section 106 of the Act, or


July 1, 2012 6-21

2. Except as provided in subsections (3) and (4) of this section, and section 5.1.3(4), the stumpage rate effective July 1, 2010 for a cutting authority where the stumpage payable is cruise based shall be calculated as stand as a whole in accordance with the following:

a. the stumpage rate is determined using chapters 1, 2, 3, 4 and 5 of this manual,

b. the stumpage rate determined under paragraph (a) of this subsection shall apply to the net merchantable volume on the cutting authority area.

3. Except as provided in subsections (4) and (5) of this section, if, after a reappraisal under section 2.2.3 of this manual:

a. the net merchantable coniferous volume in each cutblock within the cutting authority area is comprised of 35% or more red and grey MPB attacked Lodgepole pine, and

b. timber harvesting has not yet started on the cutting authority area,

The stumpage payable may be cruise based.

4. Where a timber sale licence was entered into under section 21 of the Act as that section was before it was repealed that provides for cutting permits and included a bonus bid, the stumpage payable will remain scale based.

5. Where an occupant licence to cut has been issued for the purposes of removing timber for agriculture, the stumpage payable shall be scale based.

6. Where a non-replaceable forest licence (NRFL) or a forestry licence-to-cut (FLTC) was advertised on the basis of competition, and the successful bidder’s bonus bid only applied to the sawlog portion of the volume advertised, the stumpage payable for cutting permits issued under these licences shall remain scale based.

7. Where the sawlog volume of a cutting authority was advertised on the basis of competition and

a. The cutting authority was issued prior to June 1, 2010, and

b. The stumpage payable is cruise based,

The bonus bid shall be prorated by the person who determines the stumpage rate using Tables 4-6 or 4-7 of this manual as per section 4.6.


6-22 July 1, 2012


Timber Pricing Branch Appendices

July 1, 2012 A-1

Appendices


A-2 July 1, 2012

Appendix I Equipment and Labour Rates (Cost Base July 1, 2010)

MACHINE DESCRIPTION TYPICAL MODEL $/HOUR

Crawler Tractor Cat D9R, Komatsu D275AX-5, Dressta TD-40E 293.75

Crawler Tractor Cat D9N (years: 1996 and older) 254.55

Crawler Tractor Cat D8T, Komatsu D155AX-5B, Deere 1050J, Dressta TD-25M 224.85

Crawler Tractor Cat D7RII, Komatsu D65/85, Deere 850/950, Dressta TD-15M 193.00

Crawler Tractor Cat D6T, Dresser TD15H, Komatsu D51/61, Deere 750J/850J 154.10

Crawler Tractor Cat D5K, Case 1150H, Komatsu D37/39/ 129.90

Rock Drill (includes two operators) Compressor: 750 cfm on tank chassis (includes Tank Drill outfit) 238.77

Grader Cat 160M, Deere 772/872, Case 885 140.55

Front End Loader (Gravel) Cat 966H, Komatsu WA450, Case 921C Deere 744J, Volvo L150E

159.00

Front End Loader (Logs) Komatsu WA480-6, Volvo L180E, Deere 824J 183.75

Hydraulic Excavator incl. Brush Guard & Thumb Cat 345 DL, Komatsu PC400LC, Case CX460/800 271.10

Hydraulic Excavator incl. Brush Guard & Thumb Komatsu PC300HD-7 /400 (out of date model) 214.94

Hydraulic Excavator incl. Brush Guard & Thumb Hitachi ZX350LC, Komatsu PC300-8, Volvo EC330C, Cat 330D 197.84

Hydraulic Excavator incl. Brush Guard & Thumb Cat 325DL, Hitachi ZX270LC, Deere 270D-LC 181.61

Hydraulic Excavator incl. Brush Guard & Thumb Cat 322C, Komatsu PC220LC, JD 230C-LC 168.08

Hydraulic Excavator incl. Brush Guard & Thumb Cat 320CL, Hitachi ZX200LC, JD 200C-LC 157.30

Gradall Cat M325D L MH 181.05

Logging Truck (Highway) All Triaxle (6axle) tandem tractor & lowbed w/ booster 115.20

Self Loading Log Truck Highway log truck + 5 tonne deck crane 128.10

Gravel Truck 10.7 m3 (14 cu. yd.) 99.83

Gravel Truck Articulated (labour included) 25 - 29 tonne: Cat 730, Deere 300D, Terex TA27/30 Volvo A30E 172.60

Gravel Truck Articulated (labour included) 20 - 24 tonne: Cat 725, Deere 250D, Terex TA25 Volvo A25E 155.70

Lowbed 5 axle unit: tandem tractor and lowbed 104.45

Lowbed 7 axle unit: A or B train (or triple axle with booster) 132.45

Concrete Mix Truck 6.1 m3 (8 cu yd) 101.95

Concrete Vibrator (labour not included) 3.65 m – 6.10 m (12’ to 21’) 5.01

Concrete Mixer (labour not included) 0.17 m3 (6 cu ft) 7.60

Crane - Truck Mounted 18 tonne 113.65

Soft Track Skidder KMC/FMC 2100/2400 (out-of-date model) 144.05

Rubber Tired Skidder Cat 515 Clark F/H-66 TJ 360D (out-of-date model) 101.00

Vibrator Compactor Cat 515 plus 2.7 t to 3.6 t roller 115.45

Tractor and Grid Roller Cat 515 plus grid roller 116.25

Labourer Group I: Includes 40% payroll loading 35.33

Roadman Group II: Includes 40% payroll loading 35.62

Crib/Culvert Maker, Powderman Group VII: Includes 40% payroll loading 37.42

Landingman Group VIII: Includes 40% payroll loading 37.89

Rockdriller & Powderman (for load & blast only) Group VII & XI: Includes 40% payroll loading 81.43

Bridgeman Tradesman: Includes 40% payroll loading 46.32

Powersaw (labour not included) All: one man, 20 inches + bar 3.60

Faller, including powersaw cost Includes 40% payroll loading 66.72

Sources:

2010/2011 B.C. Road Builders & Heavy Construction Association, Equipment Rental Rate Guide (rates based on a 3-year old machine), and IWA agreement rates including payroll loading.


July 1, 2012 A-3

1. Except as provided in (6), the rates shown in Appendix I will be used for all detailed engineering cost estimates made under section 4.3.3 of this manual.

2. The machine rate includes labour for the operator (all found). There are no additions.

3. Notwithstanding (4) and (5), crew transportation, supervision and camp / cookhouse costs where applicable are included in this manual and no additions are permitted.

4. Licensees that incur camp costs (as defined in section 3.6.3 and recovers the said camp costs from a contractor and credits an account, in the books of the licensee, are permitted $50.00 per person day for staying at the camp.

5. Licensees that incur costs for crew transportation and/or accommodation as part of Detailed Engineering Cost Estimates, which are not included in the standard phase costs of this manual are permitted $50.00 per person day.

6. Use of equipment rates not listed in this appendix must be approved by the regional timber pricing co-ordinator.


A-4 July 1, 2012

Appendix II Development Cost Allocation

Crown Timber = Appraised timber including appraised Timber Licences

Private Timber = Non-appraised timber

Variable Prorate = A tributary-volume type prorate between appraised and non-appraised timber

No

START

IS THISDEVELOPMENT

ON CROWNLANDS?

DEVELOPMENTON PRIVATE

LANDS

ISACCESS TO

PRIVATE TIMBERONLY?

ISACCESS TO

CROWN TIMBERONLY?

ISACCESS TO

PRIVATE TIMBERONLY?

ACCESS TO BOTHCROWN AND

PRIVATE TIMBER

100% PRORATE

OF ALLDEVELOPMENT

COSTS IN APPRAISAL

0% PRORATE

NO APPRAISAL

VARIABLE PRORATE

OF ALLDEVELOPMENT

COSTS INAPPRAISAL

No

YesYes

No No

YesYes

0% PRORATE

NO APPRAISAL

ISACCESS TO

CROWN TIMBERONLY?


PRIVATE TIMBER

100% PRORATE

ROAD USE CHARGEMAY BE APPLICABLE

(SECTION 4.7)

VARIABLE PRORATE

ROAD USE CHARGEMAY BE APPLICABLE

(SECTION 4.7)

No

Yes

IS LANDOWNED BY ATHIRD PARTY

Yes

No

ISACCESS TO

CROWN TIMBERONLY?

100% PRORATE

OF ALLDEVELOPMENT

COSTS IN APPRAISAL

VARIABLE PRORATE

OF ALLDEVELOPMENT

COSTS INAPPRAISAL


PRIVATE TIMBER

Yes

No


July 1, 2012 A-5

Appendix III Relative Soil Moisture to Absolute Soil Moisture Conversion Table

Region BEC Relative Soil Moisture Regime Class (from field guide)

Zone Subzone 0 1 2 3 4 5 6 7

SIR BG xh1 ED ED ED ED ED SD M W



SIR BG xw1 ED ED ED ED ED SD M W

SIR BG xw2 ED ED ED ED ED SD M W

SIR ESSF dc1 VD MD MD SD SD/F M VM W

SIR ESSF dc2 VD MD MD SD SD/F M VM W

SIR ESSF dk VD MD MD SD SD/F M VM W

SIR ESSF dv VD MD MD SD SD/F M VM W

SIR ESSF mw VD MD MD SD F M VM W

SIR ESSF vc MD SD SD F M VM VM W

SIR ESSF vv MD SD SD F M VM VM W

SIR ESSF wc1 MD MD SD F M M VM W




SIR ESSF wk1 MD MD SD F M M VM W

SIR ESSF wm MD MD SD F F M VM W

SIR ESSF xc VD VD MD MD SD M VM W

SIR ESSF xv VD VD MD MD SD F M W

SIR ICH dk VD VD VD MD SD M VM W

SIR ICH dw1 VD VD MD SD F M VM W

SIR ICH dw2 ED ED VD MD SD M VM W

SIR ICH mk1 VD MD MD SD F M VM W




SIR ICH mw1 VD MD MD SD F M VM W


A-6 July 1, 2012


Zone Subzone 0 1 2 3 4 5 6 7



SIR ICH vk1 MD MD SD F M M VM W

SIR ICH wk1 VD MD SD F F M VM W



SIR ICH xw VD VD VD MD SD M VM W

SIR IDF dk1 ED VD VD VD MD F M W




SIR IDF dm1 ED VD VD VD MD F M W

SIR IDF dm2 ED VD VD VD MD F M W

SIR IDF mw1 VD VD VD MD SD F VM W

SIR IDF mw2 VD VD VD MD SD F VM W

SIR IDF u ED VD VD MD MD F VM W

SIR IDF ww VD VD VD MD SD F M W

SIR IDF xh1 ED ED VD VD MD SD M W

SIR IDF xh2 ED ED VD VD MD SD M W

SIR IDF xm ED ED VD VD MD SD M W

SIR IDF xw ED ED VD VD MD SD M W

SIR MS dc VD VD VD MD SD M VM W

SIR MS dk VD VD VD MD SD M VM W

SIR MS dm1 VD VD VD MD SD M VM W

SIR MS dm2 VD VD VD MD SD M VM W

SIR MS xk VD VD VD VD MD F M W

SIR MS xv VD VD VD MD SD F VM W

SIR PP dh1 ED ED ED VD VD SD M W

SIR PP dh2 ED ED ED VD VD SD M W


July 1, 2012 A-7


Zone Subzone 0 1 2 3 4 5 6 7

SIR PP xh1 ED ED ED ED VD SD M W

SIR PP xh2 ED ED ED ED VD SD M W

SIR SBPS dc ED ED VD MD SD F M-VM W

SIR SBPS mc VD VD VD MD SD F M-VM W

SIR SBPS mk ED VD VD MD SD F M-VM W

SIR SBPS xc ED ED VD VD MD SD M W

SIR SBS dw1 VD MD MD SD SD F M W

SIR SBS dw2 VD MD MD SD SD F M W

SIR SBS mc1 VD MD MD SD F M VM W

SIR SBS mc2 VD MD MD SD F M VM W

SIR SBS mh VD MD MD SD SD M VM W

SIR SBS mm VD MD MD SD F M VM W

SIR SBS mw VD MD MD SD F M VM W

SIR SBS wk1 VD MD SD F F M VM W

NIR BWBS dk VD MD MD SD F M VM W

NIR BWBS mk VD MD MD SD F M VM W

NIR BWBS mw VD MD MD SD F M VM W

NIR BWBS wk1 VD MD SD SD F M VM W



NIR CWH vh2 SD SD F F M VM W W

NIR CWH vm1 MD SD SD F F M VM W

NIR CWH vm2 MD SD SD F F M VM W

NIR CWH wm SD SD SD F F M VM W

NIR CWH ws1 VD MD MD SD F M VM W

NIR CWH ws2 VD MD MD SD F M VM W

NIR ESSF mc VD MD SD SD F M VM W


A-8 July 1, 2012


Zone Subzone 0 1 2 3 4 5 6 7

NIR ESSF mk VD MD MD SD F M VM W

NIR ESSF mm1 VD MD MD SD F M VM W

NIR ESSF mv1 VD MD SD SD F M VM W




NIR ESSF wc2 MD MD SD F M M VM W

NIR ESSF wc3 MD MD SD F M M VM W

NIR ESSF wk1 MD MD SD F M M VM W

NIR ESSF wk2 MD MD SD F M M VM W

NIR ESSF wv MD SD SD F F M VM W

NIR ICH mc1 VD MD SD SD F M MV W

NIR ICH mc1a VD MD SD SD F M MV W

NIR ICH mc2 VD MD SD SD F M MV W

NIR ICH mm VD MD MD SD F M VM W

NIR ICH vc MD SD SD F M M VM W

NIR ICH vk2 MD SD SD F M M VM W

NIR ICH wc MD MD SD F F M VM W

NIR ICH wk1 VD MD SD F F M VM W



NIR MH mm1 SD SD F F F M VM W

NIR MH mm2 SD SD F F F M VM W

NIR MH wh SD SD F F F M VM W

NIR SBPS mc VD VD VD MD SD F M-VM W

NIR SBS dh VD MD MD SD SD F M W

NIR SBS dk VD MD MD SD SD F M-VM W

NIR SBS dw1 VD MD MD SD SD F M W


July 1, 2012 A-9


Zone Subzone 0 1 2 3 4 5 6 7



NIR SBS mc2 VD MD MD SD F M VM W

NIR SBS mc3 VD MD MD SD F M VM W

NIR SBS mh VD MD MD SD SD M VM W

NIR SBS mk1 VD MD MD SD F M VM W

NIR SBS mk2 VD MD MD SD F M VM W

NIR SBS mw VD MD MD SD F M VM W

NIR SBS vk MD SD SD F M M VM W

NIR SBS wk1 VD MD SD F F M VM W



CFR CDF mm VD VD MD MD MD SD F W

CFR CWH dm VD MD MD SD F M VM W

CFR CWH ds1 VD MD MD SD F M VM W

CFR CWH ds2 VD MD MD SD F M VM W

CFR CWH mm1 MD SD SD F F M VM W

CFR CWH mm2 MD SD SD F F M VM W

CFR CWH ms1 VD MD MD SD F M VM W

CFR CWH ms2 VD MD MD SD F M VM W

CFR CWH vh1 SD SD F F M VM W W

CFR CWH vh2 SD SD F F M VM W W

CFR CWH vm1 MD SD SD F F M VM W

CFR CWH vm2 MD SD SD F F M VM W

CFR CWH wh1 SD SD SD F F M VM W

CFR CWH wh2 SD SD SD F F M VM W

CFR CWH ws2 VD MD MD SD F M VM W


A-10 July 1, 2012


Zone Subzone 0 1 2 3 4 5 6 7

CFR CWH xm VD MD MD SD F M VM W

CFR ESSF mw VD MD MD SD F M VM W

CFR IDF ww VD VD VD MD SD F M W

CFR MH mm1 SD SD F F F M VM W

CFR MH mm2 SD SD F F F M VM W

CFR MH wh SD SD F F F M VM W

NOTES: ED = Extremely Dry (0, extreme xeric)

VD = Very Dry (1, xeric)

MD = Moderately Dry (2, sub-xeric)

SD = Slightly Dry (3, sub-mesic)

F = Fresh (4, mesic)

M = Moist (5, sub-hygric)

VM = Very Moist (6, hygric)

W = Wet (7, sub-hydric)

Absolute Soil Moisture Code

ED, VD, or MD D-Dry

SD or F M-Moist

M, VM or W W-Wet


July 1, 2012 A-11

Appendix IV Appraisal Map Content

The map(s) submitted with the appraisal data submission must be at a scale of 1:5000 or 1:10000. Additional maps at other scales may be included as required. At a minimum the map(s) shall indicate the following information:

a. Cutting authority boundaries.

b. Delineation of retention or reserved areas within the cutting authority.

c. Delineation of biogeoclimatic zone, subzone and variant areas.

d. Delineation of areas by harvest method (ground, cable, or helicopter, etc.) and partial cut %.

e. Delineation of areas that are the subject of specified operations cost estimates (e.g., root disease control).

f. The geographic centre point of each cutblock and common junction of the permit.

g. Existing roads.

h. Roads to be built by type (long term, short term) and by section, as submitted in the ADS, including sections to be gravelled and or sections that are “wet” (as defined in this manual).

i. Location of roads/structures that are included in detailed engineered estimates.

j. Location and type of other development such as remedial fencing, cattleguards and pipeline crossings.

k. Map Scale indicated using a graphic bar scale.

The appraisal map may include other information considered relevant to the appraisal, and may be attached to the appraisal data submission in electronic format.

For reappraisal data submissions, reference may be made to the original map submitted. Any change to the harvest plan or area of harvest due to a “changed circumstance (section 2.2.1) during the term of the cutting authority must be mapped and submitted to the district with the ADS, for the reappraisal.


A-12 July 1, 2012

Appendix V Geophysical Clearance Line Categories

The following categories of geophysical line clearing apply to Table 6-6. All clearing activity in the categories below must follow the best practices of meandering avoidance, line of site to a maximum of 200 metres, and avoidance of merchantable timber wherever possible. Failure to employ these best practices (as determined by the district manager) will result in the line clearing being billed as Category 1. The categories are defined as follows:

Category 1 - Any line section over 100 metres in length and over 4.25 metres in width.

Category 2 - Any line section over 100 metres in length and between 3.0 metres and 4.25 metres in width.

Category 3 - Any line section over 100 metres in length and less than 3.0 metres in width.

July 1, 2012 I-1

Index

A

Additional Stabilizing Material, 4-16 Administration Costs, 4-3 Administration Levy, 5-6 Amortisation Agreements, 4-8 Appraisal Data Requirements, 1-11 Appraisal Data Submission Requirements, 1-10 Appraisal Map, 1-12 Appraisal Map Content, A-11 Appraisal Methodology, 3-2 Appraisal Process, 2-2

B

Barge/Ferry Not Used for Truck Haul (Private), 3-16 Barge/Ferry Used for Truck Haul (Private), 3-16 Basic Silviculture Cost Estimate, 4-29 Boom, 3-14 Bridges, 4-16

C

Calculation of the Real Stand Selling Price (RSP), 3-3 Camp Costs, 3-16 Cattle Guards, 4-17 Changed Circumstance Reappraisal Procedure, 2-7 Changed Circumstances, 2-4 Charges as a Share of Road Management, 4-27 Charges Other Than for Road Management, 4-27 Clearing, 4-9

Community Forest Agreements, 6-3 Comparative Cruise Data, 1-11 Coniferous Average Sawlog Stumpage Rates by Forest Zone and Species, 6-2 Controlled Recreation Areas (CRAs), 6-19 Corduroy, 4-20 Correctable Errors, 2-12 Cruise Based Stumpage Calculations, 6-20 Cruise Data, 1-10 Culverts, 4-9, 4-14 Cutblocks within a Cutting Authority Area, 1-9 Cutting Authorities with 5 000 m3 or Less Volume, 6-5 Cycle Time Variables, 3-10

D

Debris Disposal, 4-9 Decked and Partially Harvested Timber, 6-14 Definitions, 1-2 Detailed Engineering Cost Estimate (ECE), 4-4 Detailed Engineering Cost Estimates, 4-18 Development, 4-4 Development Cost Allocation, 4-6, A-4 Development Cost Estimates on Crown Lands, 4-6 Development Cost Estimates on Private Land, 4-7 Development Levy, 5-6 Dewater and Reload, 3-14 Ditch Construction, 4-9 Drainage Structures, 4-14 Dump, 3-14

E

Effective Date of a Changed Circumstance Reappraisal, 2-7 Effective Date of an Insect Damage Reappraisal, 2-10 End Haul Construction, 4-19 Equipment and labour Rates, A-2 Estimated Winning Bid Equation, 3-9 Estimated Winning Bid Variables, 3-5 Existing Roads and Structures, 4-7


I-2 July 1, 2012

F

Fencing, 4-17 Final Estimated Winning Bid, 3-19 Final Forest Management (FFMA), 4-3 Final Tenure Obligation Adjustment, 4-42 Forest Management Administration (FMA), 4-3 Forest Service Roads, 4-27 Forestry Licences to Cut for Specific Purposes (No Volume Limit), 6-6

G

Geophysical Clearance Line Categories, A-12 Geo-tech Fabric, 4-20 Grubbing, 4-9

H

Haul Method, 3-11 High Development Cost, 3-18 Horse Logging, 3-18

I

Incidental Conifer in Deciduous Leading Stands, 6-4 Indicated Rate (IR), 5-5 Insect Damage Reappraisal Procedure, 2-9 IU Calculation, 5-4

L

Levies, 5-6 Licensee, 2-2 Linear Tenures, 6-18 Log Transportation, 3-10 Long Term, 4-10 Low Grade Percent Adjustment, 4-35 Lumber AMVs, 3-3

M

Market Logger Cost, 4-40 Material Costs, 4-9 Minister’s Direction, 2-8 Minister’s Direction Procedure, 2-8 Miscellaneous Stumpage Rates, 6-16

MPS Lumber Selling Prices, 3-3

N

New Construction, 4-19 Numbering and Calculation Conventions, 1-8

O

Other Land Use Charges, 4-27 Other Roads, 4-27 Overland Construction, 4-19

P

Percent Rock, 4-11 Permitted Roads, 4-27 Pipeline Crossings, 4-17 Point of Appraisal, 3-12

R

Railway, 3-15 Railway Transportation, 3-15 Reappraisals, 2-4 Reappraisals Due to Insect Damage, 2-9 Reconstruction, 4-19 Redetermination of Stumpage Rate by Agreement, 2-14 Relative Soil Moisture to Absolute Soil Moisture Conversion Table, A-5 Request for Approval for a Road Use Charge, 4-27 Reserve Stumpage, 5-5 Responsibility for Stumpage Rate Determination, 1-7 Retaining Walls, 4-20 Return to Forest Management (RFM), 4-41 Right-of-Way Felling, 4-9 Road and Blanket Salvage Permits, 6-9 Road and Land Use Charges, 4-27 Road Management, 4-24 Road Types, 4-10

S

Salvage Timber Stumpage Rates, 6-12 Secondary Haul, 3-12

Timber Pricing Branch Index

July 1, 2012 I-3

Section Length, 4-9 Short Term, 4-10 Side Slopes, 4-19 Silviculture Levy, 5-6 Skyline and Intermediate Support Skyline, 3-17 Snow and Ice (Winter) Roads, 4-12 Snow/Ice Road, 4-10 Soil Moisture Regime, 4-11 Special Structures, 4-20 Special Transportation Systems, 3-14 Specified Operations, 3-14 Stripping, 4-9 Stump Removal, 4-9 Stumpage Adjustments, 2-11 Stumpage Rage Determination for a Cutting Authority Entered into Under a BCTS Licence, 5-2 Stumpage Rate, 5-5 Stumpage Rate Determination for a Cutting Authority Other than a Cutting Authority Entered into Under a BCTS Licence, or a Cutting Authority for Which a Stumpage Rate is Determined Under Chapter 6, 5-5 Subgrade Construction, 4-9 Subgrade Construction Variables, 4-9 Subgrade Cost Estimate, 4-12

T

Tabular Cost Estimate, 4-4 Tabular Cost Estimates, 4-9 Tenure Obligation Adjustment TOA, 4-2 Terms of Reference, 1-7 Total Stumpage, 5-4 Tow, 3-14 Trending of Detailed Engineering Costs, 4-22 Truck-to-Rail Transfer, 3-15 Turnout Construction, 4-9

U

Uphill Side Slope, 4-10 Upset Stumpage Rates (Upset), 5-2

W

Water Transportation, 3-14 Woodlot Licences, 6-3


I-4 July 1, 2012


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